Strategy sold 1,638 BTC for roughly $105 million to fund preferred stock dividends and repurchase STRC shares, as its variable-rate preferred stock continues to trade about 10% below par.
In its latest Bitcoin-related update, Strategy (Nasdaq: MSTR), the bitcoin treasury firm led by Michael Saylor, disclosed in an SEC 8-K filing that it liquidated 1,638 BTC for approximately $105 million.
The proceeds will be used to meet dividend obligations across its preferred stock lineup — including STRC, STRK, STRD, STRF, and STRE — and to finance buybacks of STRC shares.
Rather than a routine asset sale, the move highlights a broader capital strategy. Strategy is actively balancing bitcoin monetization with reserve management to meet rising cash requirements tied to its preferred equity structure.
Bitcoin Sale Details and Shift in Accumulation Strategy
The company sold the BTC at an average price of around $64,000 per coin, well below its aggregate acquisition cost of $75,419. Even with an estimated $10.9 billion unrealized loss, Strategy remains one of the largest corporate holders of bitcoin, and the $105 million sale represents only a small slice of its holdings.
The transaction also marks the sixth consecutive week without a bitcoin purchase, signaling a clear break from the aggressive accumulation strategy that has long defined the firm.
Selling activity has steadily increased. Strategy offloaded just 32 BTC in May 2026, followed by 3,588 BTC in early July for about $216 million, and now this latest tranche — with proceeds consistently directed toward dividends and share repurchases.
STRC Dynamics: Buybacks and Rising Yield Pressure
STRC repurchases have become central to Strategy’s capital management approach. The Variable Rate Series A Perpetual Preferred Stock carries a 12% annual dividend and a $100 par value but continues to trade below that level.
On July 31, STRC closed at $89.46, reflecting a discount of roughly 10–11% despite offering its highest yield to date.
Launched in July 2025 at a 9% dividend rate, STRC has seen seven straight monthly increases, reaching 12% for record dates beginning July 1, 2026. The structure includes a ratchet mechanism: if the stock trades below $95, the dividend increases by 0.5%, and once raised, it cannot be reduced.
Strategy adjusts the rate monthly to support the share price and bring it closer to par, a key requirement for issuing new shares and raising capital.
However, the persistent discount has forced the company to pause new STRC issuance under its at-the-market program, limiting its ability to fund further bitcoin accumulation through that channel.
At the same time, competition is intensifying. Rival firm Strive has launched its SATA preferred security, offering roughly a 13% yield with daily payouts and no underlying debt, drawing investor demand away from STRC.
