Strategy sells 1,638 bitcoins to fund STRC shares and dividends

Key Insights

Strategy sold 1,638 bitcoins for $104.7 million to support dividend payments and STRC share buybacks.

MSTR stock sales brought in $290.6 million and raised U.S. dollar reserves to $4 billion.

The company currently holds 842,138 bitcoins and has suspended new bitcoin purchases.

In the week ended August 2, Strategy sold 1,638 bitcoins for US$104.7 million. The company used the proceeds for preferred stock dividend payments and STRC share buybacks. The average price on sale was US$63,957 per piece.

After the transaction was completed, Strategy held 842,138 bitcoins in its corporate reserves. The company also increased its dollar reserves to $4 billion. These moves show a clear shift towards liquidity and preferred stock support.

New Bitcoin purchases remain suspended while management works to strengthen STRC shares. The company also maintains financing flexibility despite weak cryptocurrency markets.

At the same time, the company information reported in this article is publicly disclosed and is used for information reference purposes only and should not be interpreted as financial or investment advice.

Strategy used US$52.4 million of the proceeds from the Bitcoin sale to pay preferred stock dividends. Another $52.3 million was used to repurchase STRC shares under its approved securities program.

During the reporting period, the company repurchased 912,143 STRC shares at a cost of US$81.2 million. After this repurchase, approximately US$893.8 million is still available under the preferred securities repurchase authorization.

Strategy also maintained STRC's half-month dividend payment of $0.50. Based on a face value of $100, the dividend is equivalent to an annualized yield of 12%.

Yahoo Finance data shows that STRC shares are trading at a price below their face value, adding to pressure on the company's financing model. Weak preferred stock prices can reduce the efficiency of future capital raising.

As a result, management is focusing on discount buybacks rather than frequent dividend increases. The company previously changed STRC dividend payments from monthly to semi-monthly, but did not increase the total dividend obligation.

The decision came after Strategy revised its capital framework at the end of June. The policy allows the sale of Bitcoin for dividend payments, debt repayments, reserve funds, and approved securities repurchases.

Earlier filings with the U.S. Securities and Exchange Commission show that Strategy has used Bitcoin earnings to support preferred stock allocations and dollar reserves.

MSTR stock sales increased Strategy dollar reserves to US$4 billion

During the same reporting period, MSTR stock sales generated net income of US$290.6 million. Strategy sold 3,011,361 shares of common stock through its market offering program.

The company uses $250 million in its U.S. dollar reserves. An additional $28.9 million was used for additional STRC share buybacks. The remaining $11.7 million added to the company's cash balance.

As of August 2, reserves reached US$4 billion. Michael Saylor said the increased liquidity extended the use of reserves by 57 days.

Strategy currently estimates that reserve coverage is approximately 2.3 years. The cash pool is used to support preferred stock dividends and interest payments on outstanding debt.

Larger reserves provide management with more room during periods of weak Bitcoin prices and reduce the need to raise funds in unfavorable market conditions.

However, this practice temporarily limits new Bitcoin holdings. Strategy currently holds a total of 842,138 bitcoins at an acquisition cost of approximately US$63.5 billion.

This position still makes the company the largest holder of corporate bitcoin. The latest sale of bitcoins represents only a small portion of the overall reserve.

Strategy prioritizes STRC stocks before making new Bitcoin purchases

Strategy's second-quarter earnings report has increased market attention to its capital structure. The company reported a net loss of $8.22 billion after Bitcoin experienced a large unrealized valuation decline.

Management stated that accounting losses did not change its long-term treasury strategy. CEO Phong Le said new Bitcoin purchases will remain limited while STRC shares are trading below $100.

Restoring preferred securities to near par value has become a top priority. This goal supports the company's ability to raise funds through digital credit securities in the future.

The company also changed the way STRC dividends are set. Management will now consider market prices, competitive yields, credit spreads, Bitcoin volatility, and reserve coverage.

This policy replaces the previous practice of automatically increasing dividends whenever the STRC trading price fell below par. Strategy has now disclosed three Bitcoin disposals in 2026.

Previous transactions included 32 bitcoins sold between May 26 and May 31, and another 3,588 bitcoins sold between June 29 and July 5.

The company currently combines Bitcoin sales, MSTR stock sales, and reserve growth to manage preferred stock dividends and repurchase obligations.