Strategy's $1.45 billion preferred-share buyback program is supporting a substantial share of trading in one of its key Bitcoin financing instruments.

According to a Keyrock research report, Strategy's repurchases accounted for more than 20% of weekly trading volume in its variable-rate preferred stock, STRC, during almost every week of September.

The company's share reached about 28% the week of Sept. 8 before falling to just under 20% in early October.

The findings raise questions about how much of STRC's market liquidity comes from independent investors and how trading conditions might change if Strategy reduces its purchases.

That question is becoming increasingly relevant as the Michael Saylor-founded company approaches the limit of its repurchase authorization.

Strategy had spent approximately $1.45 billion of its $2 billion authorization as of Oct. 4, leaving $547.2 million available. The program has helped support STRC as its shares recovered from the mid-$70s in June to approximately $99.50, approaching the security's $100 reference price.

However, the repurchases are discretionary, and Strategy can modify, suspend, or terminate the program.

For a company seeking to establish preferred securities as a recurring funding channel for Bitcoin accumulation, the concern is whether those instruments can sustain investor demand without continued intervention from their issuer.

STRC is already among the most actively traded preferred securities in the market, averaging approximately $150 million in daily volume.

Keyrock found that the instrument can typically absorb about $28 million in trading before its price moves 10 basis points, or 0.1%.

That puts it well ahead of Strive's SATA and Strategy's fixed-rate preferred securities, each with less than $3 million in comparable market depth.

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