Strategy, led by founder and chairman Michael Saylor, completed its second-largest Bitcoin sale this year. Between July 27 and August 2, the enterprise sold 1,638 Bitcoin, securing $104.7 million at an average price of $63,957 per BTC, as confirmed in an 8-K filing with the Securities and Exchange Commission.
Proceeds fund dividends, stock repurchases
Of the total amount raised, $52.4 million went toward dividend payments for STRC, the company’s perpetual preferred stock, while $52.3 million was allocated to repurchasing additional STRC shares. Following the transaction, Strategy’s Bitcoin holdings stood at 842,138 BTC, acquired at a total cost of $63.5 billion.
Earlier in July, Strategy sold 3,588 BTC for approximately $216 million. Before that, the company had reported its first Bitcoin sale of the year in early June, amounting to 32 BTC. These moves follow a 2022 sale designed specifically as a tax-loss transaction.
Strategy allocated over $50 million each to both dividend payments and STRC share buybacks, maintaining its significant presence among institutional Bitcoin holders.
Capital moves: USD reserve and stock performance
Within the same period, Strategy sold $290 million worth of MSTR shares. The company used $250 million from these proceeds to boost its US dollar reserves to $4 billion, while $28.9 million supported further STRC share repurchases. An additional $11.7 million was funneled into Strategy’s cash reserves, extending the firm’s USD runway by 57 days, now totaling 2.3 years. Michael Saylor confirmed these details in an X post on Monday.
As of Monday’s pre-market session, STRC traded at $89.4, 10.6% under its $100 par value, according to Yahoo Finance. The company’s MSTR stock also fell 0.9% ahead of market opening.
| Asset | Trading Price | Change | Par Value / Reference |
|---|---|---|---|
| STRC | $89.4 | -10.6% | $100 par value |
| MSTR | Pre-market down | -0.9% | – |
STRC serves as a main vehicle for Strategy to fund its ongoing Bitcoin acquisitions. When trading below par, the company faces limitations in raising capital via new STRC sales, potentially compelling it to offer higher dividend rates to attract investors.
Mini dictionary: STRC, Strategy’s perpetual preferred stock, issues quarterly dividends and is used by the company to fund large-scale Bitcoin purchases. Its price performance can directly impact the firm’s ability to efficiently raise new capital in markets.
Calls for a revised approach
Market observers have expressed concerns about Strategy’s financial structure. On June 24, Ki Young Ju, CEO of CryptoQuant, recommended that the company pause further Bitcoin acquisitions and reinforce its cash reserves. Ju noted the firm’s dividend coverage had decreased from seven years to just 14 months, highlighting short-term liquidity pressures.
Recommendations were made to halt new Bitcoin purchases and adopt a more systematic approach to capital management, focusing on rebuilding cash reserves.
In a June 29 disclosure, Strategy introduced a new capital framework enabling Bitcoin sales to fund dividend commitments. The company also increased the annual dividend rate on STRC to 12% and reported a US dollar reserve rise to $2.55 billion at that time.
