MicroStrategy repurchased $25 million of its STRC preferred stock on July 27. The company executed these buybacks under a new $1 billion program. Cash reserves increased to $3.75 billion to support future dividend payments.
Executive Chairman Michael Saylor addressed the funding strategy on July 28. Future STRC repurchases may be funded by selling common stock or Bitcoin. Funding decisions will depend on prevailing market conditions.
At least one analyst criticized the potential use of Bitcoin holdings for these buybacks. The analyst suggested the company should prioritize acquiring more Bitcoin over stock repurchases.