Strategy Raises Preferred-Share Repurchase Authorization to $3 Billion

Strategy has increased its preferred-share repurchase authorization to $3 billion, highlighting a capital-allocation trade-off as buybacks compete with Bitcoin purchases while potentially lowering future dividend costs.

Strategy spent $193 million repurchasing STRC shares and bought 267 Bitcoin (BTC) during the same period. The authorization covers preferred-share repurchases.

Perpetual preferred shares have no fixed maturity date, which can ease refinancing pressure. They can also attract investors seeking yield who do not want to hold Bitcoin directly. As companies issue more shares, however, their dividend costs rise.

Companies’ ability to keep issuing shares to fund Bitcoin purchases depends on the shares trading at or near face value. If prices fall below that level, new issuance may become less attractive and companies may favor buybacks.