Strategy Opens Path to Bitcoin Sale — Michael Saylor Explains Why It Makes Sense
Michael Saylor, Executive Chairman of Strategy Inc. (NASDAQ: MSTR), outlined the company's potential funding sources for future buybacks of its Series A Variable Rate Perpetual Preferred Stock (STRC). These buybacks could be financed through the sale of Bitcoin or MSTR shares, depending on market conditions. This strategy is seen as attractive when STRC trades significantly below its $100 par value, allowing the company to repurchase shares at a discount and reduce future dividend obligations.
Strategy aims to maintain STRC trading near its $100 par value with high liquidity and low volatility. The company, adhering to its digital credit capital concept, will not issue new STRC shares below par. In the week ending July 26, Strategy repurchased approximately $25 million worth of STRC shares at an average price of $86.52 per share, taking advantage of the discount.
Strategy has increased its USD reserve to a record $3.75 billion, but this reserve is reserved exclusively for preferred stock dividends and debt repayment. Therefore, future STRC buybacks will be funded separately, primarily through the issuance of MSTR common stock or the sale of Bitcoin when deemed economically justified by management. This approach provides flexibility to execute discounted buybacks without impacting funds earmarked for dividends and debt.
cryptonews.ru20 小時前
