Strategy CEO Buys $1M of STRC as Preferred Shares Trade Below $100 Par

Overview

• STRC has traded below its $100 par value, pushing its effective yield toward junk-debt levels and putting the company’s primary above-par issuance route to fund Bitcoin purchases on pause.
• Strategy’s CEO Phong Le bought $1 million of STRC and said he will hold until it reaches par, a move that produced a modest price bounce into the high $80s.
• The company raised liquidity and covered obligations by increasing its USD reserve to $1.4 billion, selling 2.71 million common shares for $335.5 million, and selling 32 BTC for roughly $2.5 million.
• Strategy continued selective Bitcoin activity, buying 520 BTC for about $34.9 million and now holds roughly 847,363 BTC at an average cost near $75,651, while facing a rising dividend bill after issuing over $10 billion of preferreds and lifting the coupon to about 11.5%.
• Analysts say the funding engine is less efficient but not broken, and the firm now faces clear tradeoffs—higher cash costs, more equity dilution, or more asset sales—with potential knock-on effects for broker margin rules and issuer support actions in the preferred market.