Strategy’s Michael Saylor Defends STRC $100 Par With Buybacks
Strategy’s executive chairman Michael Saylor reaffirmed the firm’s goal to keep STRC (Variable Rate Series A Perpetual Stretch Preferred Stock) trading at or above its $100 par value. STRC is structured as a perpetual preferred equity security that pays variable monthly dividends (initially ~9% annualized) and is designed to reduce price volatility versus holding Bitcoin directly. The product is backed by Strategy’s Bitcoin holdings and cash reserves, with no crypto tokens embedded in STRC’s structure.
In mid-2026, the STRC “floor” broke down and the security reportedly traded around $74–$88. Strategy responded by pausing at-the-market (ATM) share issuance and shifting to a buyback program. The company repurchased $25M of STRC in July 2026, followed by more than $132M in additional buybacks to reduce float and support the price.
Alongside the buybacks, Strategy built USD reserves to about $4.8B while holding roughly 840,447 BTC as of mid-August 2026. Because STRC has no stated maturity date (perpetual), there is no forced payoff timeline—so buyback intensity and cash coverage are central to maintaining confidence in the $100 par floor. Saylor’s message is that each STRC repurchase is a tangible signal that the company is actively defending the $100 target.
Bullish
This is directionally bullish for STRC and could spill over into sentiment around Strategy-linked crypto exposure. The key trader-relevant point is the explicit defense of the STRC $100 par floor via large buybacks after a mid-2026 drawdown (reported $74–$88). Buybacks typically tighten supply (lower float) and can reduce near-term downside pressure, especially when paired with a sizable cash buffer (~$4.8B) backing the security.
In similar historical setups, when issuers credibly change capital allocation from issuance to repurchases (and visibly increase reserves), markets often re-price perceived “floor” risk lower, attracting income/instruments-focused buyers and stabilizing trading ranges. Short-term, traders may expect improved demand/support around the $100 area and reduced volatility if further repurchases continue. Long-term, the sustainability depends on cash generation, reserve management, and BTC valuation; if BTC weakens materially, funding capacity for dividends and continued buybacks could become a question, but the article signals active management rather than passive drift. Overall, the move is intended to reduce downside tail risk for STRC while maintaining Strategy’s broader Bitcoin strategy.