Phong Le, CEO of Strategy (formerly MicroStrategy), has disclosed a $1 million purchase of the company's perpetual preferred stock (ticker: STRC) and committed to holding the shares until they reach their $100 par value. The transaction, revealed in a regulatory filing earlier this week, stands as one of the most notable insider purchases in the firm's recent history.
Perpetual preferred stock is a hybrid security paying fixed dividends indefinitely, with no maturity date. By targeting par value, Le signals his belief that the current market price of STRC is undervalued relative to its fundamental worth. At the time of the filing, STRC traded well below $100, making this a high-conviction bet on the company's future performance and capital structure.
Strategy, known for its aggressive corporate Bitcoin treasury strategy, had issued the perpetual preferred stock as part of a broader capital-raising effort to fund additional Bitcoin acquisitions. Le's decision to invest in STRC rather than common stock aligns his interests with preferred shareholders, who enjoy higher claims on assets and dividends in a liquidation scenario.
Analysts view such insider purchases as a tangible vote of confidence, suggesting management sees a disconnect between market price and intrinsic value. Le's multi-year holding commitment further reinforces this message, offering a clear, measurable target for investors.
While trading volumes for STRC are currently negligible and its market price is effectively illiquid, the social media buzz following the announcement—highlighted by a Cointelegraph tweet—hints at growing interest that could eventually boost activity.
