Strategy’s preferred stock STRC briefly returned to $100 per share on Nov. 4, reaching the price threshold at which the company can issue new shares. That could shift STRC from a security Strategy has been buying back with cash into a potential funding source for further Bitcoin purchases. The company has not confirmed whether it used proceeds to buy Bitcoin that day.
STRC touches the $100 issuance threshold
Strategy said on Nov. 4 that STRC had reached $100. Executive Chairman Michael Saylor posted, “We are back.” Data tracked by STRC.live showed the security briefly hit $100 before easing to close at $99.97.
STRC.live estimated that Strategy may have restarted its at-the-market (ATM) offering that day, potentially raising enough to buy about 191 Bitcoin. Strategy has not confirmed that estimate, so it remains an external tracker’s calculation.
The $100 threshold affects Strategy’s financing options. Under its current policy, the company does not issue STRC when the share price is below $100. Information disclosed on Nov. 2 showed that about $18 billion in STRC remained available for issuance and sale as of Nov. 1. If the price stays above the threshold, Strategy can raise funds by selling preferred shares rather than issuing common stock.
Buybacks have used about $2 billion in cash
STRC had traded below its $100 par value for an extended period. Since July, Strategy has bought back about $2 billion of the security in an effort to support its price. When STRC is below the issuance threshold, the company cannot readily raise funds through new sales and may instead spend cash on buybacks, turning a potential funding instrument into a cash outflow.
As of Nov. 1, Strategy held 849,327 Bitcoin. A return to STRC issuance could provide funding for further purchases, but whether that results in actual buying will depend on the company’s subsequent disclosures on issuance and holdings.
Daily dividends preceded the return to par
The recovery followed a change to STRC’s dividend schedule. Strategy began paying dividends daily on Nov. 1, aiming to improve price stability and make the security more appealing to income-focused investors. STRC currently carries an annualized dividend rate of 12%. Its price returned to $100 within three trading days of the change.
Strategy CEO Phong Le has described STRC as “digital credit for everyone.” The product reached $10 billion in size in its first year, with average daily trading volume of about $143 million. Le has also said that yield-focused stablecoins and tokenized products based on STRC have reached $500 million, suggesting the company is looking to extend its use beyond Bitcoin financing.
Preferred-share funding comes with dividend costs
In research published on Oct. 20, Fidelity Digital Assets described perpetual preferred stock as a new source of institutional demand for Bitcoin. The firm estimated that, as of Oct. 5, Bitcoin-related preferred securities issued by Strategy and other companies had funded the purchase of a total of 135,979 Bitcoin. The securities can attract investors seeking regular income, with proceeds then directed to Bitcoin—a funding route distinct from spot exchange-traded funds.
Issuers, however, must continue to meet dividend costs. Fidelity noted that the structure is easier to sustain when Bitcoin appreciation offsets those payments; a prolonged market downturn could put greater financial pressure on issuers. Strategy maintained STRC’s 12% dividend rate while the security traded below par for an extended period and spent billions of dollars on buybacks, underscoring the cost of supporting its price and preserving its financing capacity.
Investors can track Strategy’s weekly disclosures on STRC issuance, Bitcoin purchases and buybacks to see whether a reopened issuance window translates into new Bitcoin buying.