Breaking: Strategy Buys Back $25M STRC Stock, Boosts USD Reserve to $3.75B

Michael Saylor’s Strategy on Monday said the company has further increased its USD Reserve to $3.75 billion. The largest Bitcoin treasury firm has also conducted its first STRC stock buyback under its share repurchase program. MSTR stock jumped more than 2% in premarket trading hours today.

Michael Saylor’s Strategy Boosts USD Reserve by $525 Million

Strategy has boosted its USD reserve by $525 million to a record $3.75 billion after selling about $544.5 million in MSTR stock last week, according to the latest SEC filing on July 27. With the latest increase in cash reserves, the company has 2.1 years of dividend coverage.

The company also conducted 288,930 STRC preferred stock buyback worth $25 million. This marks the first buyback under the Digital Credit Securities Repurchase Program announced last month.

Notably, $975.0 million in total purchase price of Strategy’s preferred stock remains available after the latest buyback. Also, $1 million worth of MSTR stock is still available under the MSTR Repurchase Program.

Strategy didn’t buy any Bitcoin again and continued to dilute MSTR stock. The company currently holds 843,775 BTC worth $58.47 billion. The company is sitting at more than 5.21 billion in unrealized loss as these Bitcoins were purchased for $63.68 billion.

MSTR Shares and Bitcoin Price Action

MSTR stock price closed 2.09% lower at $91.67 on Friday. The intraday low and high were $89.76 and $93.68, respectively. Trading volume was also below the average volume of 20 million.

In the premarket trading hours, MSTR stock price is trading 2.21% higher at $93.70 amid the latest pause in the US-Iran war. The stock is still down 10% in a month and almost 50% year-to-date.

Meanwhile, Strategy’s STRC stock jumped 1.66% to $88.33, still below its $100 target price. Analysts from TD Cowen, Citigroup, Bernstein, and Barclays have maintained buy ratings, with an average 12-month price target of $275 for MSTR stock.

Bitcoin has also held above $65K over the last 24 hours amid positive progress in Iran-Oman talks to manage the Strait of Hormuz. The 24-hour high and low are $64,354 and $65,658, respectively. Trading volume has also increased by 86% over the past few hours, signaling bullish sentiment among traders.

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