Strategy Spends $635M Repurchasing STRC as Preferred Stock Trades Below Par

Strategy has deployed $635 million to buy back its perpetual preferred stock STRC, which continues to trade at $97.34, below its $100 par value. Despite the significant repurchase activity, the buybacks have not been sufficient to lift STRC back to par. In contrast, Strategy's other preferred stock, SATA, has managed to hold steady at its $100 par value. Analysts attribute SATA's relative stability to its higher dividend rate, which has made it more attractive to investors. The divergence between the two instruments highlights how dividend yield can play a critical role in sustaining preferred stock valuations.