Strategy’s Stretch Preferred Stock Reaches $100 Par Value for First Time Since May

Strategy’s Stretch preferred stock, known by its ticker STRC, has achieved its $100 par value for the first time since May 2026. This milestone comes after the company executed over $2 billion in share buybacks and implemented multiple increases to its dividend rate.

The return to par is significant for Strategy, as it marks a critical threshold for the company to resume issuing new shares, which is essential for funding its ongoing Bitcoin acquisitions. The preferred stock, which pays a 12% annualized dividend, had previously traded below $80 earlier this year, prompting concerns about its viability.

Management's strategy included buying back shares and maintaining a cash reserve of $4 billion to support the stock's recovery. The company’s authorized amount for issuing new STRC shares stands at approximately $17.5 billion, which had remained largely untapped while the stock traded below par.

With STRC now at $100, Strategy can potentially reopen its issuance channel, allowing it to channel proceeds into further Bitcoin purchases. This aligns with the company's goal of increasing its Bitcoin holdings on a per-share basis, while also maintaining a dividend structure that does not dilute common shareholders.

The preferred stock's performance is closely tied to Bitcoin prices, which adds a layer of risk. As Bitcoin fluctuates, so too does the perceived value of STRC. The recent recovery has seen a substantial uptick for investors who purchased shares at lower prices, but new buyers at the current price may not experience the same upside.