Strategy Turns Bitcoin Into Cash as Another 1,638 BTC Are Sold

Strategy sold 1,638 BTC between July 27 and August 2 for $104.73 million, or an average $63,957 per coin. The company allocated $52.4 million to preferred-stock dividends and $52.3 million to repurchases of its Variable Rate Series A Perpetual Stretch Preferred Stock, or STRC.

The transaction reduced Strategy’s holdings to 842,138 BTC, acquired for an aggregate $63.51 billion at an average $75,419 per coin, according to its Aug. 3 Form 8-K. The sale represented roughly 0.2% of its pre-sale stack and followed a 3,588-BTC disposal disclosed on July 6 that raised a combined $216 million for preferred distributions and reserve replenishment.

Bitcoin Becomes a Funding Source

The latest filing shows Strategy is now using both bitcoin and common-equity issuance to manage its capital structure. During the same week, it sold 3.01 million MSTR shares for $290.6 million in net proceeds, directing $250 million to its U.S. dollar reserve, $28.9 million to STRC repurchases, and $11.7 million to cash.

That activity puts the company’s June Digital Credit Capital Framework into practice. The policy authorizes bitcoin sales to fund dividends, interest, reserves, and security repurchases.

STRC Buybacks Absorb the Proceeds

Strategy repurchased 912,143 STRC shares for $81.2 million during the week. It still has $893.8 million available under the preferred-securities authorization, while its separate $1 billion MSTR repurchase program remains unused.

STRC traded at $89.46 at 12:44 UTC on Aug. 3, about 10.5% below its $100 stated amount. Strategy identifies STRC as its initial preferred-stock buyback priority and argues that repurchases below par can reduce future dividend obligations.

Dividend Schedule Sets Next Test

Strategy maintained STRC’s annual dividend rate at 12% and said management does not intend to recommend a change until the shares demonstrate sustained trading at or near $100. Its dollar reserve reached $4 billion as of Aug. 2, equivalent to roughly 27 months of coverage against the previously disclosed $1.76 billion annual run rate for preferred dividends and debt interest.

The first of two newly declared $0.50-per-share STRC dividends has an Aug. 15 record date and is scheduled for payment on Aug. 31, providing the next fixed checkpoint for the revised capital-management plan.