Strategy Doubles STRC Buyback Program to $2 Billion to Support Preferred Stock
The Bitcoin treasury giant spent $176.3 million on its own preferred shares in one week, pausing BTC acquisitions to defend security prices.
Strategy has doubled the ceiling of its Digital Credit Securities Repurchase Program from $1 billion to $2 billion to aggressively support the price of its preferred securities. The move marks a tactical shift in capital allocation for the company, which has pivoted from its primary focus of Bitcoin accumulation to defend its internal capital structure.
Between August 31 and September 7, 2026, Strategy deployed $176.3 million in USD cash to repurchase 1,810,885 shares of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC). During this seven-day window, the company purchased zero bitcoin, prioritizing the stabilization of the STRC stock price over adding to its digital asset holdings. The repurchase program had $1.19 billion in remaining capacity as of September 7.
The Treasury Framework
Formerly known as MicroStrategy, the company rebranded as Strategy on February 5, 2025, to formalize its role as the world's first and largest Bitcoin Treasury Company. To fund its massive BTC acquisitions, Strategy utilizes a complex capital structure, including the issuance of STRC preferred stock. These securities carry a $100 stated par value and a 12% annual dividend, serving as a primary vehicle for raising the capital necessary to scale its treasury.
As of September 7, 2026, Strategy's balance sheet reflects the scale of this operation. The company holds 845,050 BTC with an aggregate cost of approximately $63.73 billion, averaging $75,412 per coin. Its liquid position includes $6.5 billion in total USD assets, split between a $5.10 billion USD Reserve and $1.44 billion in USD Cash.
Strategic Implications
This pivot to buybacks is designed to ensure that STRC shares trade near their par value. Maintaining this price floor is critical for Strategy's long-term growth engine; if the preferred shares remain stable or trade at a premium, the company can continue to issue new shares to raise further capital for Bitcoin purchases.
However, the strategy introduces a tension between asset accumulation and price support. Some critics argue that such buybacks create artificial support rather than organic demand. The risk is that if Strategy must continuously deplete its USD cash reserves to prop up the STRC price, it may jeopardize its ability to acquire more Bitcoin during market opportunities.
Outlook
Market observers will now watch whether the $2 billion program is sufficient to stabilize the preferred stock without draining the company's liquid reserves. The primary question remains whether the organic demand for Strategy's credit securities can eventually outpace the need for company-funded interventions, allowing the firm to return its full focus to Bitcoin accumulation.