Strategy (MSTR) Stock Slides as Preferred Share Buyback Takes Priority Over Bitcoin
TLDR
- Strategy spent $635.2 million buying back its STRC preferred stock, pulling cash away from Bitcoin purchases
- MSTR stock fell around 3% in pre-market trading following the news
- Strategy also bought 4,603 Bitcoin for $369.7 million, bringing total holdings to 845,050 BTC worth ~$65.9 billion
- Rival preferred token SATA holds its $100 target price by offering a higher 13% yield vs STRC’s 12%
- Wall Street gives MSTR a “Moderate Buy” consensus with an average price target of $236.38
Strategy (MSTR) dropped around 3% in pre-market trading after the company revealed it spent $635.2 million buying back its STRC preferred stock. MSTR was trading near $132.94 as of Tuesday.
Investors reacted negatively because the cash went toward defending STRC’s price rather than buying more Bitcoin, which is the core reason most people own the stock.
STRC is a preferred stock with a target value of $100. It currently trades near $97.34, still below that target despite Strategy setting up a $1 billion buyback fund. In its most recent move, Strategy spent $151.8 million to repurchase STRC at an average price of $97.48.
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