Strategy, the publicly traded Bitcoin holding company formerly known as MicroStrategy and led by chairman Michael Saylor, disclosed another sizable Bitcoin sale in an SEC filing. In the period from July 27 through Sunday, the company sold 1,638 BTC and used the proceeds to support capital-market obligations tied to its preferred stock financing structure.
According to the company’s Monday 8-K filing, the sale totaled $104.7 million at an average price of $63,957. Of that amount, $52.4 million was allocated to dividend payments on its STRC preferred stock, while $52.3 million funded STRC share repurchases.
Key takeaways
- Strategy sold 1,638 Bitcoin from July 27 through Sunday, generating $104.7 million, per an SEC 8-K.
- Dividend funding and STRC buybacks accounted for nearly all sale proceeds, underscoring how Bitcoin liquidity is being used to manage preferred-stock obligations.
- The company says it now holds 842,138 BTC, bought at an aggregate cost of $63.5 billion.
- Strategy also raised $290.6 million through MSTR share sales during the same period, increasing its US dollar reserve to $4 billion as of Sunday.
- STRC trades below its $100 target value—something investors may watch because it can affect the attractiveness and efficiency of future STRC fundraising.
Bitcoin sales feed dividends and STRC repurchases
In the latest disclosure, Strategy characterized the July 27-to-Sunday transaction as one of its larger BTC sales for the year. The company’s filing indicates this was its second-largest Bitcoin sale of 2024.
Crucially, the proceeds were not used for general corporate purposes. Instead, they were split between two items linked to STRC: dividend payments on the preferred stock and STRC repurchases. Together, those allocations amounted to just over $104.7 million, leaving little room for other uses from this tranche.
Strategy’s total Bitcoin balance after the sale stands at 842,138 BTC, with the company reporting an aggregate acquisition cost of $63.5 billion.
How this compares with earlier reported BTC sales
The latest sale follows other previously disclosed events that frame Strategy’s approach to managing its capital structure.
Earlier coverage noted that Strategy sold 3,588 BTC for about $216 million on July 6. The company also disclosed that it sold 32 Bitcoin in early June—its first reported BTC sale since a 2022 tax-loss transaction.
While each sale reduces the company’s Bitcoin exposure, the repeated pattern of tying sale proceeds to STRC-related obligations suggests Strategy is treating Bitcoin liquidity as part of a broader financing and cash-management playbook rather than treating every sale as an isolated departure from its prior accumulation stance.
Cash buffer grows as USD reserve rises to $4 billion
Alongside the BTC sale disclosure, Strategy reported raising additional funds through MSTR share sales during the same period. According to the 8-K, it raised $290.6 million, with multiple allocations.
The filing states that $250 million of the MSTR proceeds was used to increase Strategy’s US dollar reserve, which stood at $4 billion as of Sunday. It also reports that $28.9 million funded STRC repurchases and $11.7 million was added to the company’s cash balance.
In a post on X on Monday, Michael Saylor said Strategy repurchased $81.2 million worth of STRC stock and extended its US dollar “runway” by 57 days to 2.3 years.
STRC trading below target and what that may imply
Strategy’s financing mechanism includes its perpetual preferred stock, STRC. Market data cited in the report suggests STRC was trading at $89.40 during Monday’s pre-market session, or about 10.6% below its $100 target value, according to Yahoo Finance data.
In the same period, the company’s common stock—MSTR—was indicated to have declined roughly 0.9% in pre-market trading, based on Yahoo Finance data referenced in the article.
Trading below STRC’s intended par has potential consequences for Strategy’s capital strategy. If STRC remains below target value, investors may view future fundraising through STRC sales as less efficient for Strategy—because selling preferred stock at a discount typically brings in fewer dollars per unit sold relative to the target. That, in turn, can increase the importance of the company’s dividend policy to attract buyers and provide support to STRC pricing.
Earlier comments from CryptoQuant CEO Ki Young Ju had urged Strategy to pause Bitcoin purchases and replenish cash reserves after dividend coverage deteriorated. In a June 24 X post, Ju said the company should “pause Bitcoin purchases, rebuild cash reserves, and adopt a systematic framework for purchase timing.” Earlier reporting in the same context noted that dividend coverage had fallen to 14 months from seven years.
Strategy has previously responded to these concerns by laying out a framework for capital allocation. A June 29 8-K filing described a capital framework allowing Bitcoin sales to fund dividends, raised the annual dividend rate on STRC preferred stock to 12%, and disclosed that the US dollar reserve had grown to $2.55 billion.
What investors should watch next is whether the new $4 billion USD reserve and the disclosed approach—using Bitcoin sales to service STRC dividends and repurchases—continues alongside STRC trading conditions, particularly how far STRC remains below target and whether Strategy’s dividend and preferred-stock buyback activity accelerates or slows in subsequent filings.
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