Investors Split Over Using Bitcoin to Fund STRC Buybacks

Strategy raised the dividend on its flagship preferred, STRC, to an annualized 12% on June 29 and set payouts to a semi-monthly schedule in a filing that also increased the company’s USD Reserve to about $2.55 billion. The filing authorized a $1 billion repurchase program covering four preferred securities and approved a separate $1.25 billion program to monetize bitcoin; STRC was named as the initial priority for repurchases if those purchases are accretive.

The company specified that repurchases will not draw on the USD Reserve. Instead, buybacks could be funded by proceeds from the bitcoin monetization program. The repurchase authorization applies to STRC, STRF, STRD and STRK, with STRC first in line under the accretion criterion described in the filing.

STRC traded in the mid-to-high $80s in early July, with some sessions below $85, compared with the $99 to $100 range Strategy identified as a long-term target. The security has a 52-week trading range of roughly $71 to $100. STRC launched in July 2025 with a $90 to $100 offering range and a 9% dividend; the company said the instrument was designed to move back to par through dividend adjustments and issuance activity.

Market moves in 2026, including bitcoin weakness and a large convertible debt repurchase that reduced cash balances, pushed STRC as low as the low $70s by late June. Prices had not returned to prior levels after the framework changes announced on June 29.

Traders and investors on X have debated whether Strategy should use monetized bitcoin to buy back STRC aggressively or let yields be set by the market. Supporters argue that buybacks financed by bitcoin sales could push STRC closer to par and attract arbitrage activity that would raise demand. Others contend that actively forcing STRC back to par would limit price discovery and that retiring deeper-discount issues such as STRK and STRD might deliver more value per dollar retired.

Analyst Derin Olenik pointed out that despite the higher dividend rate, semi-monthly payouts and the expanded reserve, STRC remained roughly 13% below its stated par value. Market commentators have linked STRC’s price performance to bitcoin’s path and flagged questions about the durability of reserves and competition within Strategy’s preferred stack.

Strategy executives framed the framework as an expansion of capital management options. CEO Phong Le described it as added flexibility to issue shares when conditions favor issuance and repurchase when the arithmetic supports it. CFO Andrew Kang characterized bitcoin as a form of capital that can be allocated to support the preferred securities when appropriate.

At current market levels, STRC’s effective yield is near 13% to 14%, above the stated 12% dividend. A $1 billion buyback executed around $86 per share would retire roughly $1.16 billion of stated preferred value, which would lower future dividend obligations on paper. The company cautioned that a falling market price alone does not automatically trigger further dividend increases and did not guarantee that STRC will reach the $99 to $100 target range.

Investors say they will monitor whether Strategy prioritizes repurchases of STRC or instead focuses on shares trading at steeper discounts, and how actively the firm monetizes bitcoin to finance any buybacks.