Strategy’s $139M preferred-stock buyback draws attention as MSTR rises 4%

Strategy Inc., the company formerly known as MicroStrategy, just spent $139.3 million buying back its own preferred stock. The market responded by pushing MSTR shares up 4.3%.

The buyback targeted Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, ticker STRC, scooping up 1,420,467 shares between September 8 and 13. The purchase was funded entirely from the company’s USD cash reserves.

The numbers behind the buyback

Strategy executed this repurchase as part of a larger $2 billion digital credit securities repurchase program authorized earlier in 2026. After this latest round, approximately $1.05 billion remains available under the preferred securities buyback authorization.

The STRC shares were trading just below their $100 par value at the time of purchase. Buying preferred stock below par reduces future dividend costs while simultaneously putting a floor under the stock price.

The company had previously repurchased $176.3 million worth of STRC shares, making the cumulative effort a clear pattern rather than a one-off decision.

As of September 14, Strategy reported USD reserves of $5.1 billion and cash of $1.3 billion. That liquidity buffer is significant for a company that needs to service dividends on preferred stock that now carries a 12% variable rate, a figure that jumped effective July 2026.

The Bitcoin elephant in the room

While the buyback grabbed the spotlight, Strategy’s Bitcoin holdings remained completely untouched at 845,050 BTC, valued at roughly $65.7 billion at current market prices. The company funded its buyback entirely from USD reserves, leaving the Bitcoin stack untouched.

Under the Digital Credit Capital Framework that Strategy established in 2026, the company has been optimizing its capital allocation. The framework prioritizes preferred stock dividends and interest payments while managing buyback activities as a secondary lever.

Why the market cared

With the STRC dividend rate climbing to 12% in July, some shareholders had started raising eyebrows about the sustainability of those payments. By aggressively buying back preferred shares, Strategy is effectively shrinking the pool of stock it owes dividends on, making the remaining payments more sustainable.

With $1.05 billion still available under its repurchase authorization, the pace and timing of future buybacks will likely depend on where STRC trades relative to its par value.

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