Strategy (MSTR) Directly Covered 20% of STRC...Share Buyback Controversy Heats Up

▲ Strategy (MSTR), STRC/AI generated image

As Strategy (Strategy, MSTR) was revealed to have directly supported about 20% of STRC's trading volume, controversy over its share buyback strategy has grown.

According to Coingape on September 15 (local time), Strategy repurchased $950.8 million worth of STRC preferred shares since July 2026. STRC, which fell to an all-time low of $71 in June, rebounded 27% after the buyback. On September 14, it rose to a 15-week high of $98.41, bolstered by an additional $139 million purchase. The gap with its par value of $100 narrowed to $1.59.

The problem is the proportion Strategy accounts for in the trading volume. One X (formerly Twitter) user pointed out that Strategy's purchases accounted for approximately 20% of STRC's trading volume from July to September. Brian Brookshire, a digital credit advisor, assessed that a structure where a company accounts for about 20% of the market to support its price is not healthy.

Analyst Strategy Maxi criticized that continuing to issue MSTR to support STRC increases the burden of share dilution on existing shareholders. He also suggested liquidating STRC and focusing on other preferred shares like STRK, STRD, and STRF. He stated, "As the size of STRC grows, the payment burden and market liquidity burden will increase, leading to further dilution," adding, "It is better to focus on accumulating Bitcoin (Bitcoin, BTC) reserves than on grand visions for digital credit and digital money." The unrealized profit of Bitcoin held by Strategy was tallied at $1.1 billion.

On Wall Street, bullish outlooks for MSTR continued, separate from the criticisms. Barclays analyst Nick Cremo maintained a buy rating on MSTR and raised his price target from $125 to $160. This anticipated an approximately 21% increase from the previous level. Canaccord also recently raised its price target from $175 to $179. Strategy's market capitalization increased to $54.4 billion, rising to 220th among US-listed companies.

Technically, $142 was presented as a key resistance level. MSTR tested this price level for four consecutive weeks but failed to break through. Coingape analyzed that if it surpasses $142, the May high of $189 could be the next target. The Relative Strength Index was tallied at 51. If the upward trend weakens and it fails to break $142, a decline to $119 was also suggested.

[Article Key Summary]

-Strategy repurchased $950.8 million worth of STRC since July, accounting for approximately 20% of the trading volume during that period.

-STRC rebounded 27% from $71 in June to $98.41 on September 14, but controversy arose over funding through MSTR issuance and share dilution.

-Barclays raised MSTR's price target from $125 to $160, and technically, whether it breaks $142 was presented as a key variable.

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