Strategy’s STRC preferred stock reached its $100 par value on Wednesday, marking the first time the security has traded at that level since May. The recovery follows more than $2 billion in share buybacks and a series of dividend rate increases implemented by the company to defend the asset’s price.

Buybacks and Dividend Changes Support Price

The preferred stock, which traded below $80 at times in June, has stabilized after Strategy shifted its distribution model. Shareholders approved daily dividends for STRC and three other preferred securities on Oct. 28 with a 99.3% vote. The first daily payment was distributed on Monday. An Oct. 29 filing set the November dividend rate at 12% annualized, equating to $1 per share for the month.

Chairman Michael Saylor had previously pledged to maintain the stock at or above par value and hold the dividend at 12% until that target was achieved. To support the price, Strategy paused bitcoin purchases during the week of Oct. 19 and allocated $204.9 million specifically to STRC buybacks.

Market Context and Bitcoin Holdings

Shares of Strategy (MSTR) rose more than 7% on Wednesday as bitcoin prices jumped above $80,000. The company holds 849,327 BTC, having added 811 coins last week, with an average acquisition cost of approximately $75,446. With bitcoin trading near $78,300 on Wednesday, the position is roughly 4% above water.

Strategy reported $20.91 billion in third-quarter operating income, comprised almost entirely of unrealized gains. The company sold 5,552 BTC during the quarter to fund dividends and buybacks. In late May, Strategy sold 32 BTC for about $2.5 million to cover a Stretch distribution, its first bitcoin sale since 2022.

Security Background and Holder Base

Launched in July 2025 at $90 with a starting rate of 9%, STRC became the largest tradable preferred security in the world, with a market value exceeding $8 billion. CEO Phong Le stated that approximately 80% of holders are retail investors. As the price slid earlier in the year amid falling bitcoin prices, Strategy raised the dividend rate to 11.25% in February, 11.5% in March, and 12% by summer.

While critics raised concerns about a potential “death spiral” for the security, analysts at Benchmark and TD Cowen disputed those claims. Saylor had described the launch of the variable-rate preferred as the company’s “iPhone moment.”