Strategy's variable-rate Series A perpetual preferred stock, STRC, closed Monday at $99.88, marking its highest price since May. The move follows an aggressive two-week repurchase campaign between Sept. 28 and Oct. 11 that totaled $368.7 million.
During that same period, Strategy acquired only $50.2 million in bitcoin—meaning the company deployed seven times more capital on STRC buybacks than on new BTC.
This directly conflicts with Saylor's July 27 statement. "We intend to remain a regular, disciplined buyer of STRC below $100," he said when the stock traded in the $80s. "More at deeper discounts, less as STRC nears $100."
On July 27, Strategy purchased 288,930 STRC shares for $25 million at an average of $86.52 per share. Yet recent filings show buyback intensity accelerated as STRC approached par value—the inverse of Saylor's stated approach.
Strategy treats STRC's price near $100 as a key performance metric for its digital credit product. According to the company's Sept. 30 filing, it will maintain the 12 percent annual dividend rate until STRC shows "sustained, healthy trading near $100 per share."
Retiring 3,705,947 shares through buybacks eliminates approximately $44.5 million in annual dividend obligations. Each share pays $12 yearly, so the reduction lowers future cash outflows.
Strategy's buying dominated STRC volume. Between Oct. 5 and Oct. 9, roughly $649 million in STRC traded hands. Strategy's $192.4 million in repurchases that week accounted for approximately 30 percent of total volume.
STRC had bottomed at $71.25 in June. Monday's close represented a five-month high, a milestone flagged by investor Scott Melker. The stock last closed at $100 on May 14.
Strategy's total bitcoin treasury now stands at 848,250 BTC, per Saylor's Monday post. The company's average cost per coin is $75,444, while bitcoin trades near $83,300 at press time.
The most recent 250-bitcoin acquisition cost Strategy $86,194 per coin—above current market price. Saylor nonetheless posted Monday that "the bears are under control."
Strategy's preferred repurchase authorization had $620.9 million remaining on Sept. 30, declined to $547.2 million by Oct. 4, and fell to $354.8 million by Oct. 11. At last week's pace, remaining capital represents less than two weeks of purchasing power. The company cited $975 million available for repurchases in July.
Two upcoming dates carry weight for STRC holders. An Oct. 15 record date and an Oct. 28 vote on daily dividends will determine how long the 12 percent rate persists—directly influencing the financial incentives for holders.
Critics have seized on the buyback acceleration. One labeled Saylor's actions "another broken promise," citing the increased repurchases near par despite his earlier pledge to buy less as STRC approached $100.
