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Strategy dumped 1,638 Bitcoin between July 27 and Sunday. The sale brought in $104.7 million at an average price of $63,957 per coin, making it the company’s second-largest Bitcoin sale of the year — all disclosed in an 8-K filing with the Securities and Exchange Commission.
The split of that cash was pretty much 50/50. Exactly $52.4 million went straight to dividend payments on the company’s STRC preferred stock. The other $52.3 million funded a repurchase of those same STRC shares. So Strategy is basically selling Bitcoin to service and buy back its own preferred equity instrument — a loop that would’ve seemed unusual a few years ago but is now apparently standard operating procedure for the firm. Strategy still holds 842,138 Bitcoin, acquired for a combined $63.5 billion. That’s a massive reserve by any measure.
Earlier sales this year: 3,588 Bitcoin on July 6 for roughly $216 million. And 32 Bitcoin in early June — the first sale since a 2022 tax-loss transaction.
Saylor’s MSTR Move and the Dollar Runway
Strategy didn’t stop at Bitcoin. Within the same window, the company raised $290.6 million through sales of its MSTR shares. Of that, $250 million went into the US dollar reserve, pushing it to $4 billion. Another $28.9 million supported further STRC repurchases, and $11.7 million landed in the company’s cash balance.
Michael Saylor, founder and chairman, posted on social media that the firm repurchased $81.2 million worth of STRC stock total, extending its US dollar runway by 57 days — bringing the full runway to 2.3 years. That’s the kind of number Saylor tends to track closely and broadcast publicly. No further comment from the company beyond that post.
It’s worth stepping back. Strategy has been running an unusual financial model for years now — holding Bitcoin as a primary treasury asset while issuing preferred stock and convertible notes to fund more purchases. That model works well when Bitcoin prices rise. When they don’t, the mechanics get complicated fast.
STRC Trading Below Par, and What That Means
Come Monday’s pre-market session, STRC was trading at $89.40. That’s a 10.6% drop from its $100 target value. MSTR stock fell a more modest 0.9%.
STRC sitting below par is a real problem, not just a cosmetic one. The preferred stock is a core financing tool for Strategy’s Bitcoin buying strategy. When it trades below its intended value, raising fresh capital through new STRC sales gets harder. The company would probably need to hike the dividend rate to pull in new investors and get the price back up. Higher dividends mean higher costs, which means more pressure on the Bitcoin reserve or the cash pile.
That pressure isn’t new. On June 24, CryptoQuant CEO Ki Young Ju publicly said Strategy should pause Bitcoin purchases and rebuild cash reserves — he’d seen the dividend coverage period shrink considerably. Strategy’s response came five days later, on June 29, in a new filing that laid out a capital framework explicitly allowing Bitcoin sales to fund dividends. The same filing announced a hike in the annual dividend rate on STRC preferred stock to 12%.
So the playbook is now official: sell Bitcoin if needed, raise the dividend if needed, keep the machine running.
The US dollar reserve sitting at $4 billion gives Strategy some cushion. The cash balance — $2.55 billion as of the last filing — adds more. That’s not nothing. A multi-year runway means the company can absorb short-term volatility without a fire sale. But the STRC discount won’t fix itself, and the 12% dividend rate is a real ongoing obligation.
Preferred stock trading below par is something equity markets watch closely. It can signal that the market isn’t fully convinced the issuer can sustain payments. For Strategy, which has tied its entire identity to Bitcoin accumulation, any sign of financial strain draws outsized attention.
The company’s Bitcoin stash — 842,138 coins — is still enormous. At current prices, that’s a position most institutions can’t touch. But managing the preferred stock, the dividends, the buybacks, and the cash runway all at once while Bitcoin prices move around is genuinely complex. The June 29 framework change was an acknowledgment of that complexity.
STRC closed pre-market at $89.40.
Frequently Asked Questions
How much Bitcoin did Strategy sell and at what price?
Strategy sold 1,638 Bitcoin between July 27 and Sunday at an average price of $63,957, totaling $104.7 million.
What did Strategy do with the $104.7 million from the Bitcoin sale?
$52.4 million covered dividend payments on STRC preferred stock, and $52.3 million funded a repurchase of STRC shares.
What is Strategy’s current Bitcoin holdings total?
Strategy holds 842,138 Bitcoin, acquired for a combined total of $63.5 billion.
