Strategy has sold 1,638 Bitcoin for $104.7 million after redirecting part of the proceeds toward preferred-stock dividends and share repurchases while increasing its U.S. dollar reserve.
An SEC filing submitted on Monday showed the company sold the Bitcoin between July 27 and Sunday at an average price of $63,957 per coin. Strategy allocated $52.4 million from the sale to dividend payments on its STRC perpetual preferred stock, while another $52.3 million went toward repurchasing STRC shares.
Following the transaction, Strategy’s Bitcoin holdings declined to 842,138 BTC acquired at a combined cost of approximately $63.5 billion.
The filing also disclosed that Strategy raised another $290.6 million by selling MSTR common shares during the same reporting period. Of that amount, $250 million was added to the company’s U.S. dollar reserve, $28.9 million funded additional STRC repurchases, and $11.7 million increased its cash balance.
Executive Chairman Michael Saylor said in a post on X that Strategy repurchased $81.2 million worth of STRC stock during the period and extended the company’s U.S. dollar funding runway by 57 days to roughly 2.3 years.
The latest disposal comes after Strategy introduced a new capital framework at the end of June that allows Bitcoin sales to support preferred-stock dividends, debt obligations, approved security repurchases and the company’s dollar reserve.
Earlier SEC filings showed the company also sold 3,588 Bitcoin for approximately $216 million on July 6 and disclosed another sale of 32 Bitcoin in early June, its first reported Bitcoin disposal since a tax-related transaction in 2022.
Recent company updates had already pointed to a change in capital allocation. During its second-quarter earnings call on July 31, Executive Chairman Michael Saylor said Strategy would no longer direct every available dollar toward immediate Bitcoin purchases, choosing instead to maintain both cash and Bitcoin on its balance sheet.
Chief Executive Phong Le also said during the earnings call that Strategy would hold off on additional Bitcoin purchases while STRC continued trading below its $100 stated value.
By July 26, the company had built a $3.75 billion U.S. dollar reserve, which has now increased to about $4 billion after the latest stock sales. Strategy previously said the reserve is intended to cover preferred dividends and debt-related obligations unless the board approves another use.
Supporting STRC has become a central part of Strategy’s financing plan because the preferred security is one of the vehicles it uses to raise capital for Bitcoin purchases.
Yahoo Finance data showed STRC traded at $89.40 during Monday’s pre-market session, leaving it 10.6% below its $100 stated value. MSTR shares were also down 0.9% before the opening bell.
A lower STRC price can make future fundraising through preferred-share sales less effective. The company has previously acknowledged that it wants the security to trade close to its stated value before resuming more aggressive Bitcoin accumulation.
Earlier this month, Strategy confirmed it would keep STRC’s annual dividend rate at 12% for August despite the preferred stock remaining below par. Under a revised policy adopted on June 29, management now considers factors including market price, competing yields, Bitcoin volatility, credit spreads and cash-reserve coverage instead of automatically raising the dividend whenever STRC trades below $100.
The company has increasingly relied on discounted share buybacks rather than repeated dividend increases. Earlier disclosures showed it repurchased roughly $25 million worth of STRC between July 20 and July 26, while nearly $1 billion remained available under its preferred-securities repurchase authorization.
The latest filing indicates Strategy is still directing fresh capital toward strengthening liquidity even as it trims part of its Bitcoin position.
Most of the $290.6 million raised from MSTR share sales was added to the company’s dollar reserve, bringing the balance to approximately $4 billion as of Sunday. According to Saylor’s update, the additional liquidity extended the reserve’s ability to support dividend and interest obligations by nearly two months.
The approach follows management’s earlier comments that preserving funding flexibility could ultimately support future Bitcoin purchases rather than deploying all available capital immediately.
CryptoQuant founder and CEO Ki Young Ju argued in a June 24 post on X that Strategy should temporarily pause Bitcoin acquisitions, rebuild its cash reserves and adopt a more systematic purchase framework after estimating that the company’s dividend coverage had fallen sharply.
The company’s actions since then have largely centered on rebuilding liquidity, repurchasing discounted STRC shares and maintaining the preferred dividend instead of expanding its Bitcoin holdings.
Strategy reported an $8.22 billion net loss during the second quarter after recording an $8.32 billion unrealized loss on its Bitcoin holdings under fair-value accounting rules. Even so, management maintained that the accounting loss did not change the company’s long-term Bitcoin strategy.
During the earnings call, executives said restoring STRC closer to its $100 stated value would take priority before new Bitcoin purchases resume.
Benchmark and H.C. Wainwright both maintained buy ratings following the quarterly results, although Benchmark lowered its price target.
The firms said Strategy’s cash reserve, preferred-share repurchases and financing strategy could strengthen its ability to raise capital in the future, while continuing to note that the company’s outlook remains closely linked to Bitcoin prices and investor demand for its preferred securities.
