Strategy’s capital overhaul extends cash runway as executives target STRC at $99-$100
The company raised STRC’s dividend, expanded cash reserves, outlined buybacks and possible Bitcoin sales, and said gradual long-term stabilization near par should come through active capital management and product upgrades.
Strategy’s digital credit capital overhaul helped STRC recover from its late-June price dislocation, while Michael Saylor and Bitcoin strategy manager Chaitanya Jain reiterated that the preferred security is intended to trade gradually back toward $99-$100 over time. The company raised STRC’s dividend rate by 50 basis points to 12% for July record dates, outlined about $2.55 billion in cash reserves, authority for up to $1.25 billion in Bitcoin sales, and $2 billion of buybacks, with one newer account specifying $1 billion for preferred shares and $1 billion for common stock. Analysts including Galaxy Research’s Alex Thorn said the package eases near-term liquidity pressure and extends cash coverage to about 17 months, but Strategy still faces roughly $6.7 billion of convertible debt maturities in 2027-2028 and remains highly exposed to Bitcoin price swings.
- preferred security: A class of security that generally has priority over common stock for dividends and claims, and often trades around a stated face value.
- convertible debt: Bonds that can be exchanged for shares.
- options open interest: The total number of outstanding options contracts that remain open and have not been closed or exercised.