Strategy’s STRC perpetual preferred shares are still trading below their $100 par value, even as the bitcoin treasury company continues to pour money into buybacks.
Strategy has spent a total of $635.2 million repurchasing STRC, which recently traded around $97.34. The company had previously authorized up to $1 billion for the buyback program, helping the preferred stock recover from a low of roughly $71.
The size of Strategy’s repurchases has grown as STRC has moved closer to par. Its latest transaction involved $151.8 million worth of shares purchased at an average price of $97.48.
At the same time, Strategy resumed buying Bitcoin after a two-month break. The company acquired 4,603 BTC for $369.7 million last week, paying about $80,000 per coin. Its total Bitcoin stash has now reached 845,050 BTC, valued at approximately $65.9 billion.
STRC is also facing competition from Strive’s SATA preferred stock. SATA carries a 13% annualized dividend that is paid daily, while STRC offers a 12% annualized rate with payments made twice a month.
SATA has stayed close to its $100 par value for more than a week, giving Strive room to issue more shares through its at-the-market program. The company has used proceeds from those sales to help finance the acquisition of 1,800 BTC during the past week.
The gap between the two companies is visible in their common shares as well. Strive’s ASST stock has climbed about 60% this year, whereas Strategy’s MSTR shares are down roughly 15%.
While Strategy’s repeated purchases have pushed STRC considerably higher from its lows, the preferred stock has yet to regain its $100 par value. SATA’s more attractive dividend rate, meanwhile, has helped Strive’s preferred shares remain around par.
