Strategy’s Stretch preferred stock, traded as STRC, touched its $100 par value on Wednesday for the first time since May. The price had fallen below $80 at points in June, leaving the company’s at-the-market share-issuance program inactive until the stock recovered to par.
Strategy has spent about $2.25 billion buying back STRC since the discount opened. The repurchases reduced the number of shares outstanding and the associated dividend payments. Strategy has said it will resume issuing new shares when STRC reaches $100, allowing it to raise funds for bitcoin purchases.
Recent changes to the preferred stock’s dividend schedule may also have helped reduce price volatility. On Oct. 28, shareholders approved daily dividend payments for STRC and three other preferred securities, with 99.3% voting in favor. The first daily payment was made Monday. A filing dated Oct. 29 set STRC’s November dividend rate at 12% annualized, equivalent to $1 per share for the month.
STRC launched in July 2025 at $90, with an initial 9% dividend rate. Strategy adjusts the rate monthly with the stated aim of keeping the share price near $100. When the stock trades above par, the company can issue additional shares and use the proceeds to buy bitcoin.
The share price had remained below par despite successive rate increases, reaching 11.25% in February, 11.5% in March and 12% by summer. Strategy also bought back $204.9 million of STRC in the week of Oct. 19, while pausing bitcoin purchases that week.
Strategy held 849,327 BTC after adding 811 bitcoin last week, according to the article. With bitcoin near $78,300 on Wednesday and the company’s average purchase price at about $75,446, the holdings were roughly 4% above cost. Whether Strategy reopens its share-issuance program at $100, and whether investors absorb any new shares, remains to be seen.
Sources: Bitcoin Magazine.