Michael Saylor’s Strategy sold 1,638 Bitcoin in its second-largest cryptocurrency sale of the year.
The company used the proceeds to finance dividend payments and repurchase shares of its STRC preferred stock.
Strategy Raises $104.7 Million From Bitcoin Sale
Strategy sold the Bitcoin between July 27 and August 2, according to an 8-K filing submitted to the U.S. Securities and Exchange Commission.
The company received approximately $104.7 million from the transaction.
Its average selling price was $63,957 per Bitcoin.
Strategy allocated $52.4 million of the proceeds to dividend payments on STRC preferred shares. It used another $52.3 million to repurchase STRC stock.
Strategy Still Holds More Than 842,000 Bitcoin
Following the sale, Strategy reported total holdings of 842,138 Bitcoin.
The company acquired those coins for an aggregate cost of approximately $63.5 billion.
Despite the latest transaction, Strategy remains one of the world’s largest corporate Bitcoin holders.
However, the recent sales indicate that the company is prepared to use part of its cryptocurrency treasury to meet financing and shareholder obligations.
Second-Largest Bitcoin Sale of the Year
The latest disposal was Strategy’s second-largest Bitcoin sale of 2026.
On July 6, the company sold 3,588 Bitcoin for approximately $216 million.
It also disclosed the sale of 32 Bitcoin in early June. That was its first reported Bitcoin sale since a tax-loss transaction completed in 2022.
The recent activity marks a shift from Strategy’s earlier reputation as a company that primarily accumulated Bitcoin without selling it.
MSTR Share Sales Raise Another $290.6 Million
Strategy also raised approximately $290.6 million through sales of its MSTR common stock during the same reporting period.
The company directed $250 million of those proceeds towards its U.S. dollar reserve.
Strategy used another $28.9 million to repurchase STRC shares, while $11.7 million was added to its cash balance.
The additional funding increased the company’s liquidity while supporting its preferred stock programme.
U.S. Dollar Reserve Reaches $4 Billion
Strategy reported that its U.S. dollar reserve had reached approximately $4 billion by August 2.
Michael Saylor said the company’s latest actions extended its dollar liquidity runway by 57 days to around 2.3 years.
A larger cash reserve could help Strategy meet dividend payments and other financial obligations without needing to sell Bitcoin during unfavourable market conditions.
However, the company’s capital requirements remain closely linked to the performance of its preferred shares and access to equity markets.
Strategy Repurchases $81.2 Million of STRC
Saylor said Strategy repurchased a total of $81.2 million worth of STRC stock.
The amount included funds raised through both the Bitcoin sale and the issuance of MSTR shares.
STRC is a perpetual preferred security that Strategy uses as one of its financing tools.
The company can issue preferred shares to raise capital, which may then be used to support its wider corporate and Bitcoin strategies.
STRC Trades Below Its Target Value
STRC traded at approximately $89.40 during Monday’s pre-market session.
That placed the security around 10.6% below its intended $100 target value.
Strategy’s MSTR common shares also declined by approximately 0.9% in pre-market trading.
STRC trading below its target level could make it more difficult for Strategy to raise money through additional preferred stock sales.
Why a Weak STRC Price Matters
Strategy uses STRC as a financing mechanism for its Bitcoin and capital-management strategy.
When STRC trades below its intended value, investors may be less willing to buy new shares.
This could reduce the amount of capital Strategy can raise through preferred stock issuance.
The company may also face pressure to increase STRC’s dividend rate to make the security more attractive and support its market price.
Strategy Raises STRC Dividend Rate to 12%
In a June 29 regulatory filing, Strategy introduced a new capital framework allowing it to sell Bitcoin to finance dividend obligations.
The company also increased the annual dividend rate on STRC preferred stock to 12%.
At that time, Strategy disclosed a U.S. dollar reserve of approximately $2.55 billion.
The reserve has since increased to $4 billion, partly because of additional MSTR share sales.
Analyst Calls for Stronger Cash Reserves
CryptoQuant chief executive Ki Young Ju previously argued that Strategy should temporarily reduce its Bitcoin purchases and rebuild its cash position.
He made the comments after the company’s estimated dividend coverage reportedly fell from seven years to around 14 months.
Ju recommended that Strategy adopt a more systematic approach to the timing of future Bitcoin purchases.
His comments reflected growing concern that the company’s financing obligations could eventually require further asset sales.
Is Strategy’s Bitcoin Policy Changing?
Strategy continues to hold an enormous Bitcoin position, but its recent transactions show that the treasury is no longer completely untouchable.
The company has now established a framework that permits Bitcoin sales to fund dividends and other financial commitments.
This provides greater flexibility, but it may also concern investors who viewed Strategy as a permanent Bitcoin accumulation vehicle.
Future sales could depend on STRC’s market performance, dividend requirements, available cash reserves, and the price of Bitcoin.
Strategy’s Financial Outlook
The latest Bitcoin sale strengthened Strategy’s ability to meet dividend payments and repurchase preferred shares.
Its $4 billion cash reserve also gives the company more time to manage its obligations without relying entirely on new financing.
However, STRC remains below its target value, while Strategy continues to carry substantial exposure to Bitcoin market volatility.
Investors will watch future SEC filings closely for signs of additional Bitcoin sales, dividend changes, and further efforts to support the STRC share price.
