Strategy has spent $635.2 million buying back its Stretch (STRC) perpetual preferred stock, which still trades below its $100 par value despite the repurchases. The company also bought bitcoin for the first time in two months, while a rival preferred stock from Strive keeps holding its par value.
Strategy's Stretch preferred stock, STRC, remains stuck below its $100 par value even as the company keeps buying it back. The bitcoin treasury firm has now spent $635.2 million repurchasing STRC, which currently trades at $97.34.
Repurchases grow as STRC price climbs
A $1 billion repurchase authorization has lifted STRC from a low of around $71 to approximately $97. The buybacks have grown larger as the price rose, and the latest purchase totaled $151.8 million at an average price of $97.48.
Strategy also bought bitcoin for the first time in two months, acquiring 4,603 BTC for $369.7 million at around $80,000 last week. Its total holdings rose to 845,050 BTC, worth $65.9 billion.
Rival Strive's SATA holds its par value
Competition from Strive's perpetual preferred stock, SATA, appears to be one of STRC's challenges. SATA offers a 13% annualized dividend rate with daily payments, compared with STRC's 12% annualized rate paid semi-monthly. SATA has held near its $100 par value for more than a week, letting Strive issue additional shares through its at-the-market program.
The proceeds helped fund Strive's purchase of 1,800 BTC over the past week. The divergence extends to the companies' common shares, too: Strive's stock has gained 60% year to date, while Strategy's has fallen 15%.
Source: CoinDesk
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