Michael Saylor’s Strategy sold 1,638 Bitcoin between July 27 and August 2, marking the year’s second-largest Bitcoin sale for the company.
Strategy sold 1,638 Bitcoin (BTC) at an average price of $63,957 for a total of $104.7 million, according to a Monday 8-K filing with the Securities and Exchange Commission. Of the proceeds, $52.4 million was used to fund dividend payments on Strategy’s STRC preferred stock, while another $52.3 million was used to repurchase STRC.
The company now holds 842,138 Bitcoin bought at an aggregate cost of $63.5 billion.
Strategy sold 3,588 Bitcoin for about $216 million on July 6. It also disclosed the sale of 32 Bitcoin in early June, its first reported Bitcoin sale since the 2022 tax-loss transaction.
Strategy bolsters USD reserve to $4 billion, repurchases STRC stock
Strategy also reported selling $290 million in MSTR shares during the same period. About $250 million of the proceeds was used to increase the USD Reserve to $4 billion, $28.9 million to fund additional repurchases of STRC stock and $11.7 million was added to Strategy’s cash balance.
In total, Strategy repurchased $81 million worth of STRC stock and increased its USD runway by 57 days to 2.3 years, announced Strategy founder and chairman Michael Saylor in a Monday X post.
Strategy’s perpetual preferred stock, STRC, traded at $89.4, or 10.6% below its $100 intended par value, during Monday’s pre-market trading session, Yahoo Finance data shows. The company’s MSTR stock also declined 0.9% in pre-market trading on Monday.
STRC stock price, 1-day chart. Source: Yahoo Finance
STRC is one of Strategy’s main mechanisms to fund its Bitcoin accumulation. Trading below par limits Strategy’s ability to raise funds through STRC sales. It may also force the company to further increase its nominal dividend rate to attract buyers and protect STRC’s price.
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On June 24, CryptoQuant CEO Ki Young Ju said that Strategy should pause Bitcoin purchases and replenish its cash reserve, after the company’s dividend coverage fell to 14 months from seven years.
“They should pause Bitcoin purchases, rebuild cash reserves, and adopt a systematic framework for purchase timing,” wrote Ju in a June 24 X post.
In its June 29 8-K filing, Strategy unveiled a capital framework allowing Bitcoin sales to fund dividends, increased the annual dividend rate on its STRC preferred stock to 12%, and disclosed that its US dollar reserve had grown to $2.55 billion.
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