Strategy, the company formerly known as MicroStrategy, just spent $136.4 million buying back 1,431,212 shares of its own preferred stock during the week ending August 23. At the same time, the firm’s USD reserves climbed to $5.1 billion, up from $4.8 billion just a week earlier.
Inside the buyback mechanics
The shares repurchased were Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, trading under the ticker STRC. These preferred shares carry a 12% annual dividend rate.
The buyback falls under Strategy’s $1 billion Digital Credit Securities Repurchase Program. After this latest round of purchases, the company still has $516.6 million of capacity remaining under that preferred stock program, plus a separate $1 billion authorization for common stock repurchases.
Funding for the buyback came primarily from sales of Class A common stock (MSTR) through at-the-market offerings. The $300 million increase in USD reserves, from $4.8 billion to $5.1 billion in a single week, was also fueled by these ATM equity sales. Weekly SEC filings have documented a consistent pattern of these offerings supporting dividends, buybacks, and reserve growth.
