Strategy's perpetual preferred stock, STRC, has climbed more than 30% from its late-June low, trading around $94 after the company sold bitcoin, repurchased shares, and built up a cash reserve. Bitcoin's price has stabilized above $60,000 for several weeks, adding further support to the recovery.
Strategy's perpetual preferred stock, Stretch (STRC), has climbed more than 30% from its late-June low and now trades around $94 after gaining another 1% on Wednesday. The security had bottomed near $71 as bitcoin fell below $60,000.
Since that low, Strategy has sold 5,226 BTC for $321 million across three separate transactions, trimming its bitcoin holdings from 847,363 BTC to approximately 842,137 BTC. The company intended the sales, in part, to show it can tap bitcoin to cover dividend obligations rather than treat the holdings as an idle asset.
Cash reserve and buybacks reinforce the rebound
Strategy has also repurchased $106 million of STRC as it works to return the preferred stock to its $100 stated value. The company raised its U.S. dollar reserve by another $250 million on Monday, bringing the total to $4 billion — enough to cover approximately 2.3 years of dividend obligations on its preferred securities. Strategy kept STRC's annualized dividend rate at 12%.
Strategy eyes a September return to par
Strategy noted in its second-quarter earnings call that it took 70 trading days for the security to reach par after STRC's initial public offering, following a stretch at $90 in July 2025. Applying that same timeframe from when STRC fell outside its targeted range in late May, Strategy is eyeing Sept. 8 as a potential date for the preferred stock to return to its $100 par value. That timeline isn't fixed, and markets could still move differently.
Source: CoinDesk
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