Strategy Stock Slides as Saylor Pivots to Preferred Share Buybacks

The company’s net loss was primarily driven by an $8.32 billion unrealized hit on its massive Bitcoin holdings, which totaled 843,775 BTC at the end of the quarter. While revenue grew 6.9% to $122.4 million, fair-value accounting rules forced the firm to reflect Bitcoin’s recent price volatility directly in its earnings. Despite the turbulence, analysts at Benchmark and H.C. Wainwright maintained their buy ratings, noting that stabilizing the company’s variable-rate preferred stock (STRC) is a calculated move to improve future capital-raising efficiency.

Prioritizing STRC Parity

Management is currently focused on restoring STRC to its $100 par value, with the stock trading near $89 at the close of July. Chief Executive Phong Le confirmed the company will hold off on further Bitcoin purchases until this parity is achieved. The firm has already repurchased $25 million of STRC while bolstering its balance sheet with $544 million from common stock sales. With a $3.75 billion cash reserve, Strategy aims to manage its dividend and interest obligations without forced asset liquidations. Technically, the stock remains in a consolidation phase, with traders watching the $90 support level; a sustained close below this point could expose further downside toward $81, while reclaiming the $96 midpoint is required to signal renewed upside momentum.