Strategy Inc’s Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) closed at $98.71 on Oct. 20, below its $100 stated amount after the company repurchased $193.1 million of the shares.
Historical prices listed by Yahoo Finance show the Oct. 20 close. Strategy describes a long-term trading objective of about $99 to $100 for STRC, but says it cannot guarantee a particular market price. The close was below that range.
Strategy’s Oct. 19 filing shows it bought 1,938,780 STRC shares from Oct. 12-18. It used funds designated as USD Cash, separate from its USD Reserve for preferred dividends and debt interest. The purchases followed another $192.4 million in STRC repurchases disclosed a week earlier.
The board raised its authorization to repurchase digital credit securities to $3 billion. As of Oct. 18, $1.16 billion remained available under the program, which covers preferred shares beyond STRC.
Strategy can review STRC’s dividend rate monthly as part of its effort to support trading near the stated amount. It began repurchasing the shares in July. At the time, Strategy CEO Phong Le said retiring shares for less than $100 could lower future dividend costs. Strategy says discounted preferred-share repurchases may also benefit common shareholders.
The company has proposed changes to STRC’s dividend schedule as part of amendments affecting four preferred series. STRC currently pays dividends twice monthly. Under the proposal, each calendar day would become a record date for STRC dividends, with payment on the next business day. Strategy says the change would leave the annual dividend rate unchanged. Its proposed November schedule also requires the amended certificate to take effect.
Common stockholders of record Sept. 25 are eligible to vote on the amendments Oct. 28. Strategy has set Oct. 29 for the release of its third-quarter results.
