Strategy started buying back STRC.

So…the buybacks started.

Strategy disclosed on July 27th that it repurchased 288,930 shares of STRC between July 20th and July 26th for approximately $25 million at an average price of $86.52 per share. This is the first execution under the $1 billion Digital Credit Securities Repurchase Program announced June 29th, and it's the single most important data point in the credit thesis since the framework itself.

Saylor posted the same day: "We intend to remain a regular, disciplined buyer of STRC below $100. More at deeper discounts, less as STRC nears $100. Another $975M remains available for our prefs."

The USD Reserve also grew from $3.225 billion to $3.75 billion, a $525 million increase in one week. That's now approximately 25 months of preferred dividend and interest coverage. There were no bitcoin purchases or sales. MSTR ATM proceeds of $544.5 million during the same period, the largest single-week print in Strategy's history.

Strive hit exactly 20,000 bitcoin. The company bought 79 bitcoin at $65,723 average, precisely the number needed to close the gap from 19,921. Cash declined $3.4 million to $154 million as the accumulation resumed. Zero SATA ATM issuance for the fifth consecutive week.

And Saylor posted "We're gonna need another color" on X over the weekend…let's get into it!

Strategy (Nasdaq: MSTR, STRC, STRF, STRK, STRD).

The July 27th 8-K disclosed that Strategy repurchased 288,930 shares of STRC between July 20th and July 26th for approximately $25 million at an average price of $86.52 per share. This is the first activity under the $1 billion Digital Credit Securities Repurchase Program. Approximately $975 million remains available. No shares of STRF, STRK, STRD, or Class A common were repurchased in the period.

The accompanying press release included specific language on ongoing intent. Phong Le stated: "At prices below $100 per share, STRC repurchases represent an attractive allocation of capital because they can reduce future preferred dividend requirements at a discount. We intend to scale our purchases according to both price and liquidity, more at deeper discounts and less as the STRC trading price approaches $100 per share, while allowing independent market demand to establish a healthy and sustainable market."

This is the framework's first stated buyback policy. The commitment is variable-intensity execution: aggressive at deeper discounts, tapering as STRC approaches par. That policy structure is directly designed to establish a market for STRC that gradually pulls the price toward $100 without Strategy needing to be the marginal buyer at every level.

Bitcoin holdings remain at 843,775 BTC. Total aggregate purchase price of $63.69 billion at $75,476 average cost basis. MSTR ATM activity was substantial: 5,429,160 shares sold for $544.5 million in net proceeds, the largest single-week ATM print in Strategy's history.

The USD Reserve grew from $3.225 billion as of July 19th to $3.75 billion as of July 26th, a $525 million increase. Strategy stated the reserve now covers approximately 25 months of expected preferred dividend and interest obligations, well above the 12-month Board policy floor. The company explicitly clarified that repurchases will not be funded from the USD Reserve, and that continued reserve growth remains the priority. Buyback funding will come from MSTR ATM proceeds or bitcoin sales as market conditions warrant.

Zero preferred issuance under the STRC, STRF, STRK, or STRD ATM programs for the seventh consecutive week.

Over the weekend, Saylor posted "We're gonna need another color" on X. The phrasing was widely interpreted as a hint at a new preferred stock instrument in development. Strategy has not confirmed or provided detail. If a new preferred launches, it would be the sixth instrument in the Digital Credit family and could reshape the competitive dynamics against SATA.

Strategy's Q2 2026 earnings release is scheduled for today, July 30th, when you’re likely reading this. This is the first quarterly report since the Digital Credit Capital Framework was announced. Watch for updated policy language on USD Reserve targets, buyback pace intent, and any material changes to the STRC dividend policy.

Strive (Nasdaq: ASST, SATA).

The July 27th 8-K disclosed that Strive purchased 79 bitcoin between July 20th and July 24th at an average price of approximately $65,723 per bitcoin for approximately $5.2 million. Total holdings now stand at exactly 20,000 bitcoin. The 79-bitcoin purchase was calibrated to reach the milestone precisely!

The 20,000 bitcoin threshold matters mostly as a narrative marker for Strive's accumulation arc. The company has grown its holdings from 12,798 bitcoin at the Semler Scientific acquisition close in January to 20,000 in roughly seven months. Matt Cole has framed the accumulation cadence as balance-sheet-first, and the pattern of small weekly purchases funded by disciplined ATM activity in Class A common has continued.

Cash and cash equivalents declined from $157.4 million to $154.0 million, a $3.4 million decrease. The fair value of the STRC position held by Strive grew from $43.1 million to $43.9 million despite share count remaining at 505,000, reflecting the STRC price recovery during the week.

SATA shares outstanding held steady at 7,829,502 for the fifth consecutive week. Zero SATA ATM issuance. Class A common share count grew by 437,477 to 74,307,438, indicating continued issuance in the common instrument only.

The daily dividend mechanism continued operating, SATA closed the week at $96.60 with a 13.46% effective yield, tightening steadily as the discipline holds.

For nine issues we have argued that Strategy is positioning its preferred stack for an investment grade credit rating outcome- every week added new evidence. This week produced the single most important execution data point since the framework's June 29th announcement. Strategy actually deployed capital under the $1 billion Digital Credit Securities Repurchase Program.

The specifics matter. Strategy bought $25 million of STRC at an average of $86.52 per share, retiring $28.9 million of stated notional. The discount capture math is aggressively accretive: every dollar deployed retired approximately $1.16 of preferred obligation. The retired shares stop paying dividends at 12.00%. On an annualized basis, this $25 million deployment removes approximately $3.5 million of future dividend expense. If the current buyback policy holds and Strategy averages similar prices going forward, the full $1 billion program would retire roughly $1.16 billion of stated notional, removing $140 million of annual dividend obligation.

That is a structural improvement in Strategy's capital cost that will compound over time. Every buyback tranche makes the remaining preferred stack cheaper to service. Every incremental dollar of USD Reserve coverage expands relative to a smaller total obligation. The framework's core mechanism produces a self-reinforcing improvement in credit quality.

The market response was measured, not enthusiastic. STRC recovered from $87.87 to $89.50 on the week. MSTR held near $94-100. STRF held its position. Neither buyback disclosure produced the immediate price snap toward par that some observers expected. Three reasons.

First, the initial deployment was small. $25 million is 2.5% of the total program authority. STRC's daily trading volume averages $200 million. A $25 million weekly buyback pace is meaningful but not overwhelming. The market is waiting to see whether the pace scales or holds.

Second, the swap discussion overhang is still present. Bloomberg's July 6th reporting on distressed-debt fund swap talks with Moelis remains unresolved. Those funds continue to be motivated sellers on rallies. Until either a swap transaction happens or the market conclusively decides no swap is coming, STRC has structural resistance above $90.

Third, the market wants to see whether Saylor's stated policy holds under different conditions. "More at deeper discounts, less as STRC nears $100" is elegant policy language, but the credibility of the commitment depends on execution consistency. Two or three more weekly buyback disclosures at similar or larger sizes would validate the pattern. The next few weeks are diagnostic.

Three quick reasons this is the Standout.

First, the buyback authority is now proven. For four weeks after the June 29th framework announcement, the $1 billion program sat idle. That interpretation is closed. Strategy has deployed capital and disclosed the specifics.

Second, the discount capture creates compounding credit improvement. Each dollar of STRC retired at $86.52 removes $12 of annualized dividend obligation. Scaled to the full $1 billion program at similar prices, Strategy eliminates roughly $140 million of annual dividend expense. Rating agencies will notice.

Third, the buyback establishes a floor mechanism that was theoretical until now. STRC holders can model Strategy as a real buyer at $86 and below. That knowledge affects everyone else's decision to sell at those levels.

The Standout goes to the first STRC buyback because it's the moment the credit thesis moved from analytical argument to executed trade.

Key dates ahead:

Nine issues arguing the credit thesis was working. This week it started paying off in the instrument the whole argument was about. Strategy bought $25 million of STRC at $86.52 and the $1 billion buyback authority is no longer decorative. The framework is running.

Since I've been using the Dodgers and Yankees framing since Issue #005, let me re-explain for anyone new. Strategy plays like the Dodgers: established, disciplined, biggest balance sheet. Strive plays like the Yankees: hungry, aggressive, building through structural innovation. I like baseball if you couldn’t tell!

This week the Dodgers finally called the bullpen. Strive hit their 20,000 BTC milestone the way the Yankees would, buying exactly what they needed with nothing wasted. Different playbooks, same direction.

Thanks for staying with me. If this was useful, forward it to someone. If something looks off, reply and tell me. The inbox is always open.

Talk soon.

- Halston Valencia

Head of Operations, BitcoinQuant