Strategy Inc. Completes $139 Million Preferred Stock Buyback Amid Rising Share Prices

Strategy Inc., formerly known as MicroStrategy, has executed a significant buyback of its preferred stock, repurchasing over 1.4 million shares for $139.3 million. This move has led to a 4.3% increase in the company's share price, reflecting market confidence in its financial strategy. The buyback, which took place between September 8 and 13, targeted the Variable Rate Series A Perpetual Stretch Preferred Stock, trading just below its $100 par value at the time of purchase.

The buyback is part of a broader $2 billion digital credit securities repurchase program authorized earlier in 2026. Following this latest transaction, approximately $1.05 billion remains available for future buybacks. The company has previously repurchased $176.3 million worth of its preferred shares, indicating a consistent strategy rather than a one-time effort. As of September 14, Strategy reported USD reserves of $5.1 billion, with $1.3 billion in cash, providing a solid liquidity buffer to support its dividend obligations.

While the buyback has garnered attention, Strategy's substantial Bitcoin holdings of 845,050 BTC, valued at approximately $65.7 billion, remain untouched. The company has been optimizing its capital allocation under the Digital Credit Capital Framework established in 2026, prioritizing preferred stock dividends and interest payments while managing buybacks as a secondary strategy. With the dividend rate on preferred stock rising to 12% in July 2026, the buyback is seen as a move to enhance the sustainability of future dividend payments.

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Source: KLEA News