Strategy has $785 million left to close STRC’s final $5 gap after selling $213 million in Bitcoin

Strategy’s preferred stock STRC is steadily moving back toward its $100 target as the Bitcoin treasury company increases its purchases of the shares.

Data from STRC.live showed that STRC traded around $95 on Monday, extending a recovery from its late-June low of about $74 as Strategy combined open-market repurchases with a 12% annualized dividend to narrow the security’s discount.

Over the past three weeks, Strategy has acquired roughly 2.3 million STRC shares worth approximately $214.8 million. Its latest purchase was also the largest, with the company spending $108.6 million on 1.1 million shares during the week ended Aug. 9.

That followed earlier purchases of $25 million and $81.2 million.

Strategy still has $785.2 million available under the $1 billion Digital Credit Securities Repurchase Program it authorized in June.

Bitcoin sales increasingly fund STRC buybacks

In the past weeks, Strategy has increasingly turned to its Bitcoin treasury to finance the STRC purchases. During the week ended Aug. 9, the company sold 1,690 BTC for $108.6 million at an average price of $64,262.

The transaction followed a similar move a week earlier, when Strategy sold 1,638 BTC for $104.7 million. About $52.3 million of those proceeds went toward an $81.2 million STRC repurchase, with MSTR issuance providing the remainder.

Together, Strategy has sold 3,328 BTC for about $213.3 million over the past two weeks while spending $189.8 million on STRC during the same period.

The latest sale reduced Strategy’s Bitcoin holdings to 840,447 BTC from 842,138 BTC a week earlier. The company’s remaining coins were acquired for $63.36 billion at an average price of $75,385.

These transactions show Bitcoin taking on a broader role under Strategy’s Digital Credit Capital Framework. The company can now monetize portions of its holdings to support preferred securities and other obligations across its capital structure.

Strategy has sold 6,948 BTC so far this year, reducing its holdings from a June peak of 847,363 BTC. The decline remains small relative to its overall treasury, as the firm continues to be the largest corporate holder of Bitcoin globally.

Strategy pushes USD reserve to record $4.65 billion

Strategy also accelerated the buildout of its cash reserves during the week, raising an additional $653.1 million through common stock issuance.

The company sold 6.5 million MSTR shares through its at-the-market program and directed $650 million of the proceeds into its US dollar reserve, with the remaining $3.1 million added to its general cash balance.

That increased the dollar reserve to an all-time high of $4.65 billion, up from $4 billion a week earlier.

The reserve provides liquidity for Strategy’s preferred-stock dividends and interest payments, giving the company a larger buffer against the recurring obligations created by its expanding capital structure.

Strategy CEO Phong Le said the reserve has grown rapidly since the company introduced its new capital-management framework in late June. He wrote:

“Our USD Reserve and Duration are now at all-time highs. In 2.5 months, we added nearly $3.8 billion and grew both more than 5X. This is the Digital Credit Capital Framework at work.”

The latest addition extended Strategy’s dollar reserve duration by another 143 days, bringing it to approximately 2.7 years, according to Executive Chairman Michael Saylor.

Strategy now holds enough dollars to cover nearly three years of its current preferred dividends and debt interest obligations, substantially reducing near-term financing pressure tied to those payments.

Roughly $22 billion remains available across its MSTR at-the-market programs, while a separate $1 billion authorization for common-stock repurchases remains unused.

The growing reserve gives Strategy more room to manage its preferred securities and debt obligations without having to raise fresh capital each time those payments come due.

STRC’s final $5 could determine what comes next

With STRC now within about $5 of its $100 target, the next test is whether the preferred stock can close the gap without Strategy having to keep increasing its support. The firm has indicated that STRC’s return to par could take time.

During its second-quarter earnings call, management noted that the security took roughly 70 trading days to reach $100 after its 2025 launch. Applying a similar timeline to the current recovery would put STRC on course to return to par around Sept. 8.

The circumstances are different this time because Strategy is actively supporting the market through both dividend adjustments and direct repurchases.

A return to $100 could reduce the need for further purchases and improve STRC’s usefulness as a financing instrument. Issuing new shares near par allows Strategy to raise capital more efficiently than when the security trades at a persistent discount.

If STRC stalls below that level, Strategy still has $785.2 million of authorized buying capacity available to continue supporting the market.

Strategy has already demonstrated its willingness to intervene when STRC trades materially below its intended level. What remains unclear is how much intervention, if any, will be required to get the security the final few dollars back to $100.