Strategy’s STRC preferred stock briefly returned to $100 on Nov. 4, potentially restoring a funding channel for Bitcoin purchases after months of cash-consuming share buybacks.
The company announced on Nov. 4 that its STRC security had reached $100, prompting executive chairman Michael Saylor to declare:
“We’re ₿ack.”
The recovery followed about $2 billion in share repurchases since July, as Strategy sought to support the preferred stock after its prolonged decline below its $100 stated value.
Independent tracker STRC.live reported that the security touched $100 before retreating to close at $99.97. It also estimated that renewed at-the-market (ATM) activity may have financed the purchase of approximately 191 BTC on Wednesday.
Strategy has not confirmed those purchases.
Strategy’s Bitcoin treasury stood at 849,327 BTC as of Nov. 1.
The $100 threshold matters because Strategy’s current policy is not to issue STRC below that level. Its Nov. 2 disclosure listed about $18 billion of STRC available for issuance and sale as of Nov. 1. New sales could help finance Bitcoin purchases without issuing additional common stock.
However, months of below-par trading constrained that approach, forcing Strategy to shift from raising capital through STRC to repurchasing the security at a discount.
Daily dividends revive Strategy’s digital credit ambitions
STRC’s rebound followed a significant change to its dividend structure, with Strategy introducing daily distributions from Nov. 1 to improve the security’s price stability and appeal to income-seeking investors.
The preferred stock, which currently carries a 12% annual dividend rate, returned to $100 within three trading sessions of the change.
Strategy CEO Phong Le had previously described STRC as “Digital Credit for everyone,” highlighting its growth into a $10 billion product within its first year and average daily trading volume of approximately $143 million.
He also said yield-generating stablecoins and tokenized products built on STRC had grown to $500 million, illustrating the company’s ambitions to expand the instrument beyond its immediate Bitcoin financing operations.
The broader significance of such securities was highlighted in an Oct. 20 report by Fidelity Digital Assets, which identified perpetual preferred stock as an emerging source of institutional Bitcoin demand.
Fidelity estimated that Bitcoin-focused preferred securities issued by Strategy and other companies had financed the accumulation of 135,979 BTC as of Oct. 5.
The research argued that these instruments allow companies to attract investors seeking regular income and channel the proceeds into Bitcoin, creating a funding mechanism distinct from spot exchange-traded funds.
However, Fidelity warned that the model ultimately depends on Bitcoin appreciating sufficiently to offset the cost of paying dividends, exposing issuers to financial pressure during prolonged market downturns.
Strategy’s recent experience illustrates that vulnerability. Although the company has maintained STRC’s 12% dividend rate, it spent billions supporting the stock when market demand proved insufficient to keep it near its intended trading level.
Investors can check Strategy’s next weekly filing for STRC share sales, Bitcoin purchases and the pace of buybacks.
