Quick Maths On STRC Buybacks: The Truth About Net Bitcoin Per Share And Accretion

Strategy initiated open-market repurchases of STRC last week (July 20 through July 26, 2026), buying 288,930 shares for ~$25 million at an average price of $86.52. Notably, the company bought no Bitcoin and continued to grow its cash reserve.

So what is going on here? Why is the largest Bitcoin treasury company buying back its credit?

In June 2026, STRC fell far below the $100 stated amount. Last week's STRC buyback follows Strategy's Digital Credit Capital Framework, announced on June 29 in response to the June volatility, which authorized up to $1 billion of repurchases across STRC, STRF, STRD, and STRK. Likely because STRC is now viewed as Strategy's flagship product, STRC was identified as the initial priority for these buybacks.

Buyback logic starts with the position of MSTR common stock in the capital structure. Common equity owns the residual value after every senior claim has been satisfied. Strategy's BTC and cash are its liquid assets. Debt and preferred stock sit ahead of MSTR. Strategy's USD Reserve (read: cash) offset part of those senior claims. The common stock therefore represents the value left after subtracting debt and preferred stock from the bitcoin reserve and adding back available cash.

This is effectively Strategy's recently introduced "Net Bitcoin Per Share" metric. Strategy's current methodology calculates Net BTC by taking bitcoin holdings and subtracting the bitcoin-equivalent value of out-of-the-money convertible debt, other debt-like instruments, and outstanding perpetual preferred stock, then adding back the USD Reserve. Notice that this is exactly the same description as the prior paragraph!

Net BTC is divided by fully diluted common shares to produce Net BPS. Strategy's disclosures mark July 23 as the boundary for its revised mNAV methodology, which uses Net BPS as its denominator.

This metric gives MSTR investors a direct view of BTC economically attributable to common equity after senior claims. Gross Bitcoin Per Share can rise when Strategy issues more preferred stock or debt to buy bitcoin. Net Bitcoin Per Share captures the liability created alongside that bitcoin purchase, answering the question of how much bitcoin remains for common shareholders after the more senior investors in the capital structure are paid.

Therefore, Net BPS provides a framework for measuring the accretive or dilutive effect of capital markets transactions on MSTR. Think of it as another new metric that investors may evaluate along with the existing metrics already being used.

The answer is that retiring liabilities at below their notional values is accretive on a net BTC basis.

Let's consider a simple balance sheet with easy numbers to understand the basic mechanics.

Assume a company owns $100 million of BTC and carries $50 million of senior liabilities. Common equity is therefore a $50 million residual claim:

$100 million assets -- $50 million liabilities = $50 million equity

Now assume the company can retire those $50 million of liabilities for $40 million. It uses $40 million of its assets, leaving $60 million of assets and zero remaining liabilities. The common equity residual rises from $50 million to $60 million.

$60 million assets -- $0 liabilities = $60 million equity

The equity claim went from $50 million to $60 million. So spending $40 million to eliminate a $50 million claim creates $10 million of value for the residual owner (the common equity investor).

The STRC repurchase follows the same structure. Strategy paid an average of $86.52 to retire a security with a $100 stated amount. Each repurchased share removed $100 from the preferred stock claim used in the company's Net BTC calculation while consuming only $86.52 of capital. The $13.48 spread creates gross accretion to MSTR.

Strategy retired $28.893 million of STRC stated amount for about $24.998 million based on the reported average price. The difference equals approximately $3.895 million, and this value accrues to MSTR.

(It's worth mentioning that also related to this is STRC's current 12% annualized dividend rate. Retiring $28.893 million of STRC stated amount also removes roughly $3.47 million of annual dividend requirements. Also consider that since STRC is still well below $100, the company likely will raise the dividend, meaning the actual annual dividend expense removed is likely higher.)

Net BTC identifies the residual BTC owned by the common stock by considering all the senior liabilities which sit ahead. The STRC buyback is a move of financial engineering to improve the Net BTC per share metric of the company.

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