Strategy sells 1,638 BTC for $104.7M to fund STRC buybacks and preferred dividends

Strategy disclosed that it sold 1,638 Bitcoin for $104.7 million in the week ending August 2, using the proceeds to support its preferred dividend obligations and repurchase STRC preferred shares. The Bitcoin was sold at an average price of $63,957 per coin. After the sale, the company's corporate reserve stood at 842,138 BTC. Strategy said new Bitcoin purchases remain on hold as it prioritizes liquidity and support for STRC. Proceeds from the Bitcoin sale were split across two uses: $52.4 million was allocated to preferred-stock dividend payments, and $52.3 million was directed to STRC repurchases under the company's authorized securities program. During the period, Strategy bought back 912,143 STRC shares for $81.2 million, leaving about $893.8 million still available under the preferred-securities repurchase authorization. Strategy maintained STRC's semi-monthly dividend at $0.50 per share, equal to a 12% annualized rate based on the $100 stated value. With STRC trading below that stated value, management has leaned toward buying shares at a discount rather than raising dividends, a dynamic it has flagged as important to future capital-raising efficiency. Separately, sales of MSTR common stock generated $290.6 million in net proceeds. Strategy sold 3,011,361 shares through its at-the-market program, directing $250 million to its U.S. dollar reserve, $28.9 million to additional STRC repurchases, and $11.7 million to cash. The U.S. dollar reserve reached $4 billion as of August 2. Michael Saylor said the added liquidity extended the reserve runway by 57 days, with reserve coverage estimated at roughly 2.3 years. The company said the expanded cash reserve is intended to support preferred dividends and interest payments on outstanding debt, offering more flexibility during periods of weaker Bitcoin prices while temporarily limiting fresh BTC accumulation. Strategy said its 842,138 BTC position was acquired for about $63.5 billion, keeping it the largest corporate Bitcoin holder. Strategy's capital structure has drawn heightened scrutiny following its second-quarter results, when it reported an $8.22 billion net loss tied to a large unrealized decline in Bitcoin valuation. CEO Phong Le said the accounting loss does not alter the firm's long-term treasury approach, but added that new Bitcoin purchases would remain constrained while STRC trades below $100, as restoring the preferred security closer to par is the near-term priority. Management also said it has updated how it sets STRC's dividend rate, factoring in market price, competing yields, credit spreads, Bitcoin volatility, and reserve coverage, replacing an approach that would mechanically increase rates when STRC traded below stated value. Strategy has now reported three Bitcoin disposals during 2026: 32 BTC sold between May 26 and May 31; 3,588 BTC sold between June 29 and July 5; and the latest 1,638 BTC sale in the week ending August 2. This report is based on publicly disclosed corporate information and is provided for informational purposes only. It should not be construed as financial or investment advice.