MicroStrategy's preferred stock STRC climbed above $94 this week, recovering more than 30% from its June lows. The jump followed the company's $106 million share repurchase and the expansion of its dollar reserves to $4 billion.
The buyback program, part of a $1 billion authorization approved earlier, is designed to prop up STRC as it approaches its $100 stated value. Investors who bought during the June weakness have already pocketed dividend payments while watching the price recover. The company maintains a 12% annual dividend rate, paid twice monthly to preferred shareholders.
To fund the cash buffer, MicroStrategy sold 5,226 Bitcoin for roughly $321 million. The company now holds around 842,137 BTC. Management views Bitcoin as part of its liquidity toolkit, not a static treasury asset. CEO Michael Saylor emphasized that MicroStrategy operates as a public company with fiduciary obligations to shareholders, not as a personal crypto wallet.
The $4 billion reserve covers approximately 2.3 years of preferred dividend obligations. This cushion gives the company breathing room to manage capital without fire-selling assets during market downturns. Still, STRC trades below par, meaning buybacks remain the primary lever for narrowing that gap.
This piece is informational and does not constitute investment advice. Preferred stock prices and Bitcoin holdings are subject to market volatility and management decisions.
