MicroStrategy is using a 70-trading-day timeline to recover its STRC preferred stock to par value after the security fell to $74.57 on May 28, marking an informal recovery benchmark of September 8.
The recovery plan follows a $8.22 billion second-quarter loss, nearly all from an $8.32 billion loss on digital assets as Bitcoin declined roughly 40% from the prior year’s second-quarter close. The loss forced MicroStrategy to sell 3,620 BTC during the first seven months of 2026, though the company purchased 174,895 BTC in the same period, expanding holdings to 846,000 BTC by quarter-end.
Michael Saylor, MicroStrategy founder, cited the stock’s post-launch trajectory as the model. “As of the 1st of July, the institutional holdings had grown from $1.1 billion to $3.1 billion,” Saylor said. STRC rose from a $90 offering price to $100 in 70 trading days after its July 2025 launch. “We’re keeping track of that date, and we’re keeping track of our progress. If we did it in 70 days after the IPO, then it’s reasonable to target 70 days after it fell off of our trading range,” Saylor added.
Dollar Reserve and Buyback Authorization
MicroStrategy rebuilt its dollar reserve from $871 million in late May to $3.75 billion and authorized a $1 billion preferred-stock buyback program to support the recovery. The company has spent $25 million acquiring STRC shares, leaving $975 million under the authorization.
STRC’s stated value nearly doubled during Q2, rising from $5.3 billion at end of March to $10.5 billion by June 30. By July 1, institutional STRC holdings had grown to $3.1 billion, representing 29% of the investor base. Retail holdings totaled $7.4 billion, or 71% of outstanding shares, with an average position of $48,000, up from a prior average of $44,000.
Digital Credit and Bitcoin Per Share
MicroStrategy raised $7.53 billion through STRC during the first seven months of 2026. The company’s Bitcoin per diluted share declined to 203,683 satoshis by July 26, down from 210,824 satoshis at end of Q2, after preferred-stock obligation sales.
Phong Le, Chief Executive, outlined the long-term strategy. “Our overall objective is to double Bitcoin per share in seven years through digital credit,” Le said. The company targets 10% annual Bitcoin-per-share growth through 2033. “We want digital credit to work because we’re able to sell digital credit to buy Bitcoin. That generates amplification to the company,” Le added.
MicroStrategy’s Bitcoin reserve stood at $58.5 billion as of late July. The company targets digital-credit sales in the range of 10% to 20% of its Bitcoin reserve annually, implying $5.5 billion to $11 billion in annual issuance. STRC carried a 13.6% effective yield in late July, above its 12% dividend rate, reflecting the discount to stated value. Saylor cited a $9.2 billion STRC market capitalization against a $10.5 billion stated value, a $1.2 billion gap.
