Michael Saylor's Strategy Aims to Revive Crypto-Funding Model
Strategy Inc. is working to restore its preferred security STRC near its original offering price of $100 after a significant selloff, with the company itself acting as one of the largest buyers. The stock was designed to expand Michael Saylor's Bitcoin financing model beyond volatile common shares and serve as a stable capital source for digital assets. However, Strategy’s June sale of some Bitcoin stocks undermined STRC by pushing its price down close to $70 before rebounding to around $99 following large buybacks. From July 20 through September 13, the company repurchased nearly 9.96 million shares for about $950 million — roughly 18% of total STRC trading during that period and up to almost 28% in one week. Much of this funding came from sales of Strategy’s common stock rather than Bitcoin proceeds, reversing its original capital strategy. The company's ability to regain investor confidence without continued self-buying will determine whether it can issue preferred shares again as a sustainable financing tool for Bitcoin purchases.
Topics: Bitcoin strategy preferred securities stock buybacks