Strategy has spent $635.2 million to bring its preferred-type security STRC back to its $100 par value, but STRC is still hovering around $97.

As of Sept. 2, blockchain media outlet CryptoSlate reported that Michael Saylor faces a situation in which STRC must be restored to $100 by Sept. 8, a date he has suggested as an unofficial target.

The key issue is that the cost of defending STRC is rising. When Strategy began buybacks in July, it expected to deploy more funds when the discount was wider and to see outside investor demand take over as the price neared $100. In reality, weekly spending increased as the discount narrowed.

Strategy has $364.8 million left from the $1 billion buyback funding it secured. Given the recent pace of execution, that capacity could shrink quickly. That has made how much additional capital Strategy will commit to lift STRC to $100 a near-term focus.

Strategy used its common stock MSTR and its bitcoin holdings as key funding sources in defending STRC. It sold 6,916 BTC through four transactions from late June to early August. The proceeds were used for preferred-related obligations and subsequent STRC repurchases. Last week, it sold 4.53 million shares of MSTR to raise net proceeds of $602.8 million. Of that, $151.8 million went to recent STRC repurchases and $50.7 million to STRC dividend payments.

At the same time, it resumed buying bitcoin. Strategy bought 4,603 BTC for $369.7 million after about 2 months, lifting total holdings to 845,050 BTC. It also allocated $30 million separately to a liquid cash pool. It effectively restarted its bitcoin accumulation strategy while defending STRC.

The problem is that STRC is being operated in a way that differs from its original intent. STRC was designed to raise investor funds and use them for balance-sheet management, including bitcoin purchases. In recent months, proceeds from MSTR issuance and some bitcoin sale funds went first to STRC dividends and buybacks. The company's resumption of bitcoin buying is seen as reflecting its judgement that financial mechanisms around the preferred structure can now handle demand on both sides at the same time.

Still, the real test for STRC comes after it reaches $100. STRC was originally designed to use raised funds for balance-sheet management, including bitcoin purchases, but recently proceeds from MSTR issuance and some bitcoin sale funds were first used for STRC dividends and buybacks. Going forward, outside investors will need to take STRC near $100 when Strategy reduces its own repurchases.

Market conditions are not easy. Investment firm Strive has expanded its SATA preferred shares, which pay an annual 13 percent dividend and distribute payouts every business day. Metaplanet is also broadening its platform for distributing bitcoin-linked yield products. It moved into developing and distributing bitcoin-linked yield products by acquiring licensed securities platform SIIBO Securities, and is expanding its presence in the United States through Super League Enterprise.

As a result, investors can compare more bitcoin-linked yield securities with different yields, payment cycles and capital structures. STRC has strengths in scale and a track record of institutional adoption, but it has not yet been confirmed whether its existing investor base can support the $100 level and absorb new issuance after Strategy's own repurchases weaken.

Ultimately, if external demand absorbs reduced buybacks by Strategy, STRC could return to being a tool for raising funds to buy bitcoin. If demand wavers as issuer support weakens, or money shifts to competing products, maintaining that price could become harder than reaching $100.