Strategy Inc.’s flagship preferred security, STRC, is nearing its $100 face value after a sharp selloff, buoyed by the company’s own large-scale buybacks. Strategy repurchased about 9.96 million STRC shares for roughly $950 million from July 20 to Sept. 13, representing around 18% of total trading volume in that period. In the latest reported week, the company bought the equivalent of nearly 28% of total volume.

The rebound follows a June Bitcoin sale that broke Chairman Michael Saylor’s long-held stance and triggered a selloff that pushed STRC to nearly $70. Roughly 80% of the STRC repurchases were funded by sales of MSTR common stock, with Bitcoin sales covering the rest. This creates a circular dynamic where Strategy uses common stock proceeds to support the preferred meant to reduce reliance on it.

Analysts note the recovery is heavily dependent on Strategy as a buyer, with Jay Hatfield of Infrastructure Capital Advisors stating there are no significant institutional buyers. Alexander Blume of Two Prime called the dynamic counterproductive for investors seeking amplified Bitcoin exposure. Rajiv Sawhney of Wave Digital Assets emphasized that STRC only functions as a funding tool if it trades at or above par, calling sub-par levels "worthless" and "actively toxic" as a capital source.