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#StrategyInitiatesSTRCBuyback

STRATEGY STARTS FIRST STRC REPURCHASE AS CAPITAL STRATEGY EVOLVES

Strategy Inc., the world’s largest Bitcoin treasury company, has launched its first repurchase activity under the $1 billion Digital Credit Securities Repurchase Program, marking a new phase in the company’s capital management strategy. Between July 20 and July 26, 2026, Strategy repurchased 288,930 shares of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) for approximately $25 million, with an average purchase price of $86.52 per share.

The move comes after five consecutive weeks without additional Bitcoin purchases, showing that Strategy is temporarily focusing on optimizing its preferred equity structure while maintaining its long-term Bitcoin treasury strategy.

BUYING BELOW PAR CREATES SHAREHOLDER ACCRETION

The STRC repurchase was executed at a significant discount compared with its $100 stated value. At an average price of $86.52, Strategy achieved a 13.5% discount, allowing the company to retire $28.893 million of stated value using only $24.998 million in cash.

This created approximately $3.9 million in accretion for MSTR common shareholders. The mathematics behind the transaction are important: purchasing preferred shares below their stated value allows Strategy to reduce future obligations at a lower cost, strengthening the company’s overall capital structure.

$1 BILLION PROGRAM OPENS NEW CAPITAL MANAGEMENT PATH

The STRC buyback follows Strategy’s Digital Credit Capital Framework announced on June 29, 2026. The framework authorized up to $1 billion in repurchases across multiple preferred securities, including STRC, STRF, STRD, and STRK, along with another separate $1 billion authorization for MSTR Class A common stock repurchases.

STRC became the first focus of the program because of its importance within Strategy’s preferred equity ecosystem. After the initial repurchase period, approximately $975 million remains available under the preferred stock buyback authorization, giving the company significant flexibility to continue purchases if market prices remain below stated value.

FLEXIBLE BUYBACK STRATEGY DEPENDS ON MARKET CONDITIONS

Strategy’s approach is designed to adjust according to market pricing. Management has indicated that repurchases could increase when preferred shares trade at deeper discounts and slow as prices move closer to the $100 stated value.

This creates a dynamic capital allocation model where Strategy can capture value opportunities during periods of market weakness while avoiding unnecessary repurchases when discounts disappear.

USD RESERVE EXPANDS TO STRENGTHEN FINANCIAL FLEXIBILITY

Alongside the STRC buybacks, Strategy has continued strengthening its liquidity position through MSTR Class A share sales. During the same reporting period, the company sold 5,429,160 MSTR shares, generating $544.5 million in net proceeds.

From this amount, $525 million was allocated to the company’s USD Reserve, increasing the reserve balance to $3.75 billion. According to Strategy, this reserve can cover approximately 25 months of preferred dividend payments at current rates.

Importantly, the company confirmed that the USD Reserve will not be used to finance STRC repurchases, keeping dividend protection and liquidity management as separate strategic priorities.

BITCOIN TREASURY REMAINS THE CORE FOUNDATION

Despite the recent focus on preferred equity management, Bitcoin remains the foundation of Strategy’s corporate strategy. The company currently holds 843,775 BTC acquired at an average cost of $75,476 per Bitcoin, representing approximately $63.69 billion in total Bitcoin investment.

The five-week pause in BTC accumulation does not represent a change in long-term direction. Instead, Strategy appears to be balancing Bitcoin exposure with capital structure optimization, dividend sustainability, and financial flexibility.

A NEW PHASE FOR THE BITCOIN TREASURY MODEL

Strategy’s latest move highlights the evolution of the Bitcoin treasury approach. The company is moving beyond simple accumulation and building a broader financial framework that combines digital asset exposure with active balance sheet management.

The STRC repurchase program, with nearly $975 million still available, could continue creating value if preferred shares remain below par. For investors, the strategy demonstrates how Bitcoin-focused companies are developing more sophisticated methods to manage capital, support dividend commitments, and strengthen long-term shareholder value.

@Gate_Square