Strategy's STRC Rebounds 30% as $4 Billion Cash Reserve and Bitcoin Sales Bolster Recovery
Key Takeaways
- •Strategy's perpetual preferred stock STRC has recovered more than 30% from its late-June low of approximately $71 to trade around $94.
- •The company sold 5,226 bitcoin for $321 million across three transactions, reducing its total holdings from 847,363 BTC to roughly 842,137 BTC to demonstrate that bitcoin can be monetized for dividend obligations.
- •Strategy has built its U.S. dollar reserve to $4 billion, which it estimates provides approximately 2.3 years of coverage for preferred security dividend payments.
- •The company has repurchased $106 million worth of STRC as part of a broader $975 million buyback program aimed at returning the security to its $100 stated value.
- •Strategy projects that STRC could reach its $100 par value by September 8, based on a historical 70-trading-day recovery timeframe observed after its initial public offering.
Strategy's (MSTR) perpetual preferred stock, Stretch (STRC), has climbed more than 30% from its late-June low and is currently trading around $94, after gaining an additional 1% on Wednesday. The recovery has been supported by a combination of bitcoin sales, a growing U.S. dollar reserve now totaling $4 billion, and an ongoing $975 million repurchase program. Strategy, the largest publicly traded corporate holder of bitcoin, launched STRC as a perpetual preferred security—a type of instrument with no maturity date that pays dividends indefinitely—making the company's ability to sustain its 12% annualized payout central to investor confidence in the security.
STRC bottomed near $71 in late June as the price of bitcoin slipped below $60,000. Since that point, Strategy has sold 5,226 BTC for $321 million across three separate transactions, reducing its total bitcoin holdings from 847,363 BTC to approximately 842,137 BTC. According to the company, these sales were intended in part to demonstrate that bitcoin holdings can be actively used to meet dividend obligations rather than functioning solely as an idle asset. That messaging is notable for a company whose executive chairman Michael Saylor has long championed bitcoin as a treasury asset to be accumulated and held, and it signals to preferred shareholders that the underlying collateral can be monetized when needed.
Strategy has also repurchased $106 million worth of STRC as part of its broader effort to return the preferred stock to its $100 stated value. The company maintained STRC's annualized dividend rate at 12%.
On Monday, Strategy increased its U.S. dollar reserve by an additional $250 million, bringing the total cash reserve to $4 billion. The company stated that this provides approximately 2.3 years of coverage for dividend obligations on its preferred securities.
The stabilization of bitcoin's price has also played a role. After falling below $60,000 in June, bitcoin has held above that level for several consecutive weeks. Because Strategy's balance sheet is heavily tied to bitcoin's market value, the security's trajectory has tracked the cryptocurrency's price movements closely throughout STRC's trading history.
During its second-quarter earnings call, Strategy noted that following STRC's initial public offering, it took 70 trading days for the security to reach par value after trading at $90 in July 2025. Applying that same 70-trading-day timeframe from when STRC fell outside its targeted range in late May, Strategy indicated September 8 as a potential date for the preferred stock to return to its $100 par value.
Source: CoinDesk
