Key Takeaways
- Stretch led the four preferred stocks with a 38.6% return.
- Performance figures include dividends without assuming reinvestment.
- Common shareholders are scheduled to vote Oct. 28 on the daily dividend proposal.
MSTR Outpaces Four Preferred Stocks in Saylor’s Comparison
Michael Saylor, executive chairman of the largest bitcoin treasury company Strategy Inc. (Nasdaq: MSTR), highlighted the company’s five-stock performance on Oct. 24. His assessment on X linked the results to an approach combining buybacks and management of the entire capital structure.
His comments on STRC buybacks supporting MSTR accompanied a chart showing dividend-inclusive returns for four perpetual preferred stocks. These securities have no fixed maturity date. Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) returned 38.6%, while 10.00% Series A Perpetual Stride Preferred Stock (STRD) gained 35%. Returns reached 32.6% for 8.00% Series A Perpetual Strike Preferred Stock (STRK) and 22.9% for 10.00% Series A Perpetual Strife Preferred Stock (STRF).
Saylor stated:
“Programmatic $STRC buybacks have helped strengthen our credit markets and support $MSTR.”
The graphic Saylor included shows how Strategy’s stocks performed around and after the company announced its Digital Credit Capital Framework on June 29. The measurement period runs from June 26 through Oct. 23 at 4 p.m. Eastern time. Returns include dividends counted on their ex-dividend dates and assume those payments were not reinvested.
STRC Repurchases Reach $385.5 Million Over Two Weeks
Adopted June 29, the Digital Credit Capital Framework combines reserve policies, dividend management, securities repurchases, and potential bitcoin sales. It initially authorized up to $1 billion in preferred-stock repurchases and a separate $1 billion common-stock program. Management identified STRC as its initial preferred-stock priority when purchases would benefit the capital structure.
Repurchase activity continued with $192.4 million spent buying back STRC shares during Oct. 5-11, covering approximately 1.93 million shares. During that period, Strategy acquired 250 BTC for $21.5 million. Retiring preferred shares reduces the outstanding securities on which future dividends may become payable.
During Oct. 12-18, another $193.1 million in STRC repurchases brought two weeks of buybacks to $385.5 million. The company expanded its preferred-stock repurchase authorization to $3 billion, leaving approximately $1.16 billion available. It also purchased 267 BTC for $22.1 million, lifting holdings to 848,517 BTC.
Daily Dividend Proposal Heads to Shareholder Vote
Dividend management forms another part of Strategy’s financing approach surrounding its holdings of bitcoin. The company is seeking approval to distribute payments more frequently across the four preferred stocks, complementing its broader capital management efforts.
Under its proposal for daily preferred-stock dividends, every calendar day would become a record date, with payments generally following the next business day. The amendments would preserve regular dividend rates and total obligations. Implementation requires shareholder approval and dividend declarations.
Common shareholders are scheduled to vote Oct. 28, with different implementation dates across the four securities if approved and adopted. STRC’s first daily record date would be Nov. 1, followed by payment Nov. 2. For STRF, STRK, and STRD, the corresponding dates would be Jan. 1 and Jan. 4, 2027.
