Is Strategy’s STRC Buyback Loop Running Out of Cash?

Strategy built STRC, a preferred stock that pays 12% a year, to raise money for bitcoin. It hasn’t raised any since May. In late June, STRC closed as low as $74.57 , roughly 25% below the $100 price it was designed to trade near. Strategy started buying it back in late July and has kept buying every week since, spending $1.6 billion, by our count of its weekly filings . On Tuesday, STRC closed at $99.90. Last week was Strategy’s heaviest week of STRC buying yet: $192.4 million on STRC, about nine times what it spent on bitcoin. STRC is now within 10 cents of its $100 target, and under its current policy Strategy won’t sell a new STRC share until it gets there.

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