The preferred shares have recovered nearly 24% from their June closing low as Strategy builds its cash reserve and repurchases STRC.
Strategy’s variable-rate preferred stock, STRC, closed above $90 for the first time in seven weeks, extending its recovery from a June selloff that raised concerns about the Bitcoin treasury company’s financial resilience.
STRC closed at $92.32 on Monday, up 3.2% from Friday’s $89.46 close, according to Yahoo Finance data. It was the first close above $90 since June 16. The stock has recovered nearly 24% from its June 26 closing low of $74.57.
STRC is Strategy’s perpetual preferred stock with a dividend rate that can be adjusted monthly to encourage trading near its $100 stated amount. Despite the rebound, it remains below the company’s $99 to$100 target range.
The recovery followed steps by Strategy to support STRC, including the sale of 1,638 Bitcoin for $104.7 million, disclosed Monday in its latest 8-K filing. Strategy used $52.4 million to fund preferred-stock dividends and $52.3 million to repurchase STRC.
Strategy also raised $290.6 million through MSTR share sales, including $250 million for its dollar reserve and $28.9 million for STRC repurchases. It repurchased 912,143 STRC shares for $81.2 million and increased its dollar reserve to $4 billion.
Related: Has Strategy’s capital overhaul put an end to ‘death spiral’ fears?
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