Strategy Opens the Door to Bitcoin Sales—Michael Saylor Explains Why It Makes Sense

Strategy expects future bitcoin sales to help finance preferred stock repurchases, extending a funding strategy the company has already used while targeting disciplined buybacks of STRC and more stable trading in the preferred stock.

Bitcoin sales could become an attractive financing option when STRC trades sufficiently below $100, allowing the company to retire preferred shares at a discount.

Saylor presented Strategy as a regular and disciplined buyer below $100, with repurchases increasing at deeper discounts and tapering as STRC approaches its stated amount. Another $975 million remains available under the company’s preferred securities repurchase authorization, giving management substantial capacity for future transactions. At the latest average purchase price, the company acquired each STRC share for $13.48 below its stated amount before accounting for future dividend savings.

Strategy President and CEO Phong Le explained:

“At prices below $100 per share, STRC repurchases represent an attractive allocation of capital because they can reduce future preferred dividend requirements at a discount.’

“We intend to scale our purchases according to both price and liquidity—more at deeper discounts and less as the STRC trading price approaches $100 per share—while allowing independent market demand to establish a healthy and sustainable market,” he added.

That restriction leaves future STRC repurchases to be financed through other sources, including MSTR stock sales and, as Saylor outlined, bitcoin sales when market conditions justify them.