Strategy sold 1,638 Bitcoin for $104.7 million in the week ended Aug. 2, directing nearly all of the proceeds toward dividends and repurchases tied to its STRC preferred stock, according to an Aug. 3 filing with the U.S. Securities and Exchange Commission. The sale extends a recent change in the company’s financing approach, in which part of its Bitcoin reserve is being used to support preferred-share obligations and maintain liquidity.
The company sold the Bitcoin at an average price of $63,957. Of the $104.7 million raised, $52.4 million went toward STRC dividend payments and $52.3 million was used to repurchase STRC shares, the filing said.
Strategy reported holding 842,138 Bitcoin after the transaction, acquired for an aggregate $63.5 billion. The scale of that position leaves Bitcoin central to the company’s balance sheet, but the latest sales show that the reserve can also serve as a source of funding when other capital-management needs arise.
Bitcoin sales follow earlier disposals
The Aug. 2 transaction was Strategy’s second substantial Bitcoin sale disclosed in less than a month. In a filing covering July 6, the company said it had sold 3,588 Bitcoin for approximately $216 million.
Strategy also disclosed the sale of 32 Bitcoin in early June. The company described that trade as its first reported Bitcoin sale since a tax-loss transaction in 2022.
Together, the reported June, July and August sales total 5,258 Bitcoin, producing roughly $321 million in proceeds based on the figures disclosed in the filings. The transactions are small relative to Strategy’s remaining reserve, yet their purpose differs from the company’s long-established practice of retaining Bitcoin while raising capital through equity and debt offerings.
The recent sales were explicitly connected to preferred-stock funding. That link places the market performance and dividend structure of STRC more directly alongside Strategy’s Bitcoin treasury strategy than in earlier periods, when Bitcoin purchases were the dominant use of newly raised capital.
MSTR share sales add to dollar reserve
Strategy also reported selling $290 million of MSTR common shares during the July 27 to Aug. 2 period. The largest portion, approximately $250 million, was used to increase the company’s USD Reserve to $4 billion, according to the SEC filing.
The remaining MSTR sale proceeds were split between $28.9 million for additional STRC repurchases and $11.7 million added to cash.
Michael Saylor, executive chairman of Strategy, said in a statement posted on X that the company repurchased $81 million of STRC and extended its USD “runway” by 57 days to 2.3 years. The runway figure refers to the estimated period during which the company believes its dollar reserve can cover its financial obligations.
The buildup of cash gives Strategy a larger buffer for dividend payments and other corporate expenses without requiring an immediate sale of Bitcoin. It also means the company is using its common stock issuance program to create liquidity rather than directing all available capital toward additional Bitcoin purchases.
That allocation is a meaningful departure from the pattern that made Strategy one of the public market’s largest corporate Bitcoin holders. The company remains heavily exposed to Bitcoin through its 842,138-coin reserve, though its latest filings show that preserving cash capacity has become a parallel priority.
STRC funding pressure shapes capital policy
Strategy outlined a capital framework in a June 29 filing that permits Bitcoin sales to fund dividends. The company also said it had raised STRC’s annual dividend rate to 12% and increased its U.S. dollar reserve to $2.55 billion at that point.
Preferred shares such as STRC generally sit between common equity and debt in a corporate capital structure. Holders receive specified dividends, while the company can use repurchases and dividend-rate adjustments to support the instrument’s market position. Those obligations can become more costly when a company needs to offer higher yields to keep the shares attractive.
The company’s sequence of actions — selling Bitcoin, selling MSTR shares, repurchasing STRC and expanding dollar reserves — indicates that it is managing several funding pressures simultaneously. Bitcoin sales supplied cash for the immediate dividend and repurchase program, while common-stock sales expanded the reserve intended to cover future needs.
Ki Young Ju, chief executive of on-chain analytics firm CryptoQuant, warned in an X post on June 24 that Strategy should pause Bitcoin purchases and rebuild cash reserves. Ju said the company’s dividend coverage had fallen to 14 months from seven years.
Strategy’s subsequent disclosures show a reserve-building effort consistent with that concern. The USD Reserve increased from $2.55 billion on June 29 to $4 billion in the latest filing, largely through the sale of MSTR shares.
Treasury strategy becomes more conditional
Strategy has not indicated that it is abandoning Bitcoin as its principal treasury asset. Its reported holdings remain among the largest disclosed by a publicly traded company, and its $63.5 billion aggregate acquisition cost underscores the scale of its exposure.
Yet the latest filing establishes a more conditional structure around that reserve. Bitcoin is no longer presented solely as an asset to accumulate and hold; the company’s framework allows it to be converted into cash when dividend obligations and preferred-share management require funding.
That approach could reduce pressure on the company’s dollar reserve in the short term, but it also makes the size of its Bitcoin position partly dependent on the cost of maintaining STRC and the availability of capital through MSTR share sales. Strategy’s next filings will show whether the recent sales were a temporary liquidity measure or the beginning of a recurring method for funding its preferred-stock commitments.
For deeper insight into government-level Bitcoin reserves, explore our analysis on the US Bitcoin strategic reserve and its market impact.
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