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19 hours ago · 2:51 p.m. EDTStephen Alpher
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Saylor responds to naysayers on STRC buybacks
Strategy Executive Chairman Michael Saylor is coming under some social media heat for the company’s continued buybacks of its high-yielding preferred stock STRC at just modest discounts to $100 par value.
The company this morning announced the repurchase of $193 million of STRC, bringing total buybacks to nearly $2 billion. Strategy also announced an increase in the authorized buyback amount to $3 billion from $2 billion.
Recall that the buyback program started this past summer following STRC plunging nearly all the way to $70, putting in question the future of the security. In recent weeks, though, STRC has traded mostly above $98, prompting some to wonder if Strategy’s money might not be better spent on buying more bitcoin at what may (or may not) be close to bear market lows, rather than repurchasing preferred stock trading at only a very minor discount.
And others are curious that the fast pace of buybacks (Strategy has less than $9 billion of STRC issued), combined with a 12% dividend yield, hasn’t been enough to fully return STRC to $100.
“You don’t build a market worth trillions without investing billions,” said Saylor on Monday, in response to some of that criticism.
STRC is higher by 1.3% on Monday to $98.99.
