Strategy’s $150 million-a-day STRC market has a hidden dependency on its own buybacks
Keyrock reports that Strategy’s repurchases have made up more than 20% of STRC preferred-stock trading in most recent weeks, raising questions about liquidity when its $2 billion buyback authorization runs low. Strategy had spent $1.45 billion by Oct. 4, with $547.2 million remaining. STRC is more liquid than comparable preferred securities, but its market depth falls sharply when its price moves away from the $100 reference price. The report does not prove Strategy’s buying caused the liquidity patterns, and other investors may take its place. Strategy is also seeking shareholder approval for daily preferred dividends, which it hopes will attract demand. Upcoming repurchase disclosures and the Oct. 28 vote may show whether STRC can sustain liquidity without continued issuer support.
