Strategy spends $635M buying back STRC as perpetual preferred stock lags $100 par

Strategy’s perpetual preferred stock, Stretch, continues to struggle to reach its $100 par value despite the company’s ongoing repurchase efforts.

The Bitcoin treasury company has now spent $635.2 million buying back STRC, which currently trades at $97.34. The company introduced a $1 billion repurchase authorization that has helped lift STRC from a low of around $71 to approximately $97.

The repurchases have increased in size as STRC’s price has climbed. Strategy’s latest purchase totaled $151.8 million at an average price of $97.48.

Strategy meanwhile purchased bitcoin for the first time in two months, acquiring 4,603 BTC for $369.7 million last week, at around $80,000. The purchase increased its total holdings to 845,050 BTC ($65.9 billion).

Competition from Strive’s perpetual preferred stock, SATA, appears to be one of STRC’s challenges. SATA offers a 13% annualized dividend rate with daily payments, compared with STRC’s 12% annualized rate paid semi-monthly. SATA has remained around its $100 par value for more than a week, allowing Strive to issue additional shares through its at-the-market program. The proceeds helped fund the company’s purchase of 1,800 BTC over the past week.

The divergence is also evident in the companies’ common shares. ASST has gained 60% year to date, while MSTR has fallen 15%.