Strategy’s (MSTR) perpetual preferred stock, Stretch (STRC), has risen more than 30% from its June low. It is currently trading around $94, after gaining another 1% on Wednesday.
STRC bottomed in late June around $71 as bitcoin fell below $60,000. Since then, Strategy has sold 5,226 $BTC for $321 million across three separate transactions, reducing its bitcoin holdings from 847,363 $BTC to approximately 842,137 $BTC. The sales were intended, in part, to demonstrate that the company can use bitcoin to meet its dividend obligations, rather than treating it as an idle asset.
Strategy has also repurchased $106 million of STRC as it seeks to return the preferred stock to its $100 stated value.
In addition, the company increased its U.S. dollar reserve by another $250 million on Monday, bringing the total to $4 billion. This provides approximately 2.3 years of coverage for dividend obligations on its preferred securities. Meanwhile, Strategy maintained STRC’s annualized dividend rate at 12%.
As for bitcoin, the price has at least stopped falling, stabilizing above $60,000 for several weeks in a row.
The company noted in its second-quarter earnings call that, following STRC’s initial public offering, it took 70 trading days for the security to reach par after trading at $90 in July 2025. Applying the same timeframe from when STRC fell outside its targeted range in late May, Strategy is eyeing Sept. 8 as a potential date for the preferred stock to return to its $100 par value. That’s to be determined. As always, markets might have their own ideas.
