Strategy sells 1,638 Bitcoin to fund dividends and STRC repurchases

In July and August, Michael Saylor's Strategy conducted its second-largest Bitcoin sale of the year, disposing of 1,638 BTC. This move was made to facilitate dividend payments and repurchase of its preferred STRC stock. The Bitcoin sale totaled $104.7 million, with an average price of $63,957 per coin. Of the proceeds, $52.4 million was allocated to fund dividends on Strategy's STRC preferred stock, and $52.3 million was used to repurchase STRC.

Currently, Strategy holds 842,138 Bitcoin, which were purchased at an aggregate cost of $63.5 billion. The company had previously sold 3,588 BTC for approximately $216 million on July 6, and disclosed the sale of 32 BTC in early June, its first Bitcoin sale since 2022. Additionally, Strategy reported selling $290 million in MSTR shares during the same period.

The proceeds from these sales were utilized to increase the USD Reserve to $4 billion, fund additional STRC stock repurchases at $28.9 million, and boost Strategy's cash balance by $11.7 million. Announced by Strategy founder and chairman Michael Saylor via an X post, these actions resulted in repurchasing $81 million worth of STRC stock and extending the company's USD runway by 57 days, bringing it to a 2.3-year duration.

Strategy's perpetual preferred stock, STRC, traded at $89.4, or 10.6% below its $100 par value, in pre-market trading on Monday. MSTR stock also saw a decline of 0.9% during the same session. STRC's price, a 1-day chart, was sourced from Yahoo Finance. STRC plays a key role in Strategy's Bitcoin accumulation, but trading below par limits its ability to raise funds through STRC sales, potentially forcing the company to raise its nominal dividend rate to attract buyers and maintain STRC's price.