#StrategyInitiatesSTRCBuyback Strategy Initiates STRC Repurchases & Announces Ongoing Buyback Policy

On July 27, 2026, Strategy Inc. (Nasdaq: STRF/STRC/STRK/STRD/MSTR) officially announced its first-ever repurchase of STRC preferred stock, marking a significant shift in the company's capital allocation strategy. The company confirmed that it repurchased 288,930 shares of its Variable Rate Series A Perpetual Stretch Preferred Stock (“STRC”) for approximately $25.0 million at an average price of approximately $86.52 per share. These repurchases were executed through open-market transactions during the period from July 20 through July 26, 2026.

This move represents the first deployment under Strategy's Digital Credit Securities Repurchase Program, which was announced in June 2026 with a total authorization of $1 billion. Following this initial $25 million repurchase, approximately $975 million remains available for additional buybacks under the program. The company has made it clear that as long as STRC trades below its $100 per share stated amount, Strategy intends to be a regular and disciplined purchaser of STRC, subject to market conditions, applicable law, available liquidity, and the company's capital-allocation priorities.

A Disciplined Approach to Buybacks

Strategy has outlined a clear and systematic approach to its repurchase program. The company expects the pace of repurchases generally to be greater at deeper discounts and to taper as STRC approaches a trading price of $100 per share. Strategy's long-term objective is for STRC to trade consistently near $100 per share with high liquidity, low volatility, and healthy, sustainable independent demand. The company's current policy is not to issue STRC below $100 per share, and management will recommend to the board of directors that the company maintain STRC's 12.00% annualized dividend rate until STRC has demonstrated sustained, healthy trading near $100 per share.

CEO Commentary

Phong Le, President and Chief Executive Officer of Strategy, provided important context on the decision: "At prices below $100 per share, STRC repurchases represent an attractive allocation of capital because they can reduce future preferred dividend requirements at a discount. We intend to scale our purchases according to both price and liquidity—more at deeper discounts and less as the STRC trading price approaches $100 per share—while allowing independent market demand to establish a healthy and sustainable market". This statement underscores the company's commitment to disciplined capital management and value creation for shareholders.

USD Reserve Hits Record High

In parallel with the STRC buyback, Strategy also announced a significant expansion of its USD Reserve. The company added $525 million to its USD Reserve from proceeds of sales of its class A common stock (“MSTR”) under its at-the-market offering program (“ATM”), increasing the USD Reserve to an all-time high of $3.75 billion. This reserve currently equals approximately 25 months of expected preferred stock dividend payments. The company's board-approved USD Reserve Policy established this reserve specifically to support the payment of preferred-stock dividends and interest on outstanding indebtedness.

Critical Distinction: USD Reserve Not Used for Buybacks

A particularly noteworthy aspect of this announcement is that under the USD Reserve Policy, the company is not authorized to use the USD Reserve to fund STRC repurchases. Strategy expects to continue growing the USD Reserve and to fund STRC repurchases from non-USD Reserve sources, which may include proceeds from further sales of MSTR under the company's ATM and, depending on market conditions, bitcoin sales. This separation ensures that the company's substantial cash buffer remains dedicated to its intended purpose of supporting dividend payments and debt service.

Strategic Implications

This buyback initiative represents a significant evolution in Strategy's capital management approach. While the company has historically been known primarily for its Bitcoin acquisition strategy, this move demonstrates a sophisticated understanding of capital allocation across its entire financial structure. By repurchasing STRC shares at a discount to their $100 stated value, Strategy is effectively reducing its future dividend obligations while signaling confidence in its own securities. The company holds 843,775 BTC, maintaining its position as one of the largest corporate Bitcoin holders globally.

The timing, amount, and manner of future STRC repurchases will depend on market conditions, STRC's price and liquidity, applicable legal requirements, available capital, and other considerations. Importantly, Strategy's Digital Credit Securities Repurchase Program does not obligate the company to repurchase any minimum number or dollar amount of STRC and may be modified, suspended, or discontinued at any time.

This announcement represents a powerful signal to the market: Strategy is not only committed to its long-term Bitcoin strategy but is also actively managing its preferred equity structure to create value for all stakeholders through disciplined, opportunistic capital deployment.

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