Strategy sells 1,638 Bitcoin to fund dividends and STRC repurchases
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Strategy sold 1,638 Bitcoin from July 27 through Sunday for a total of $104.7 million at an average price of $63,957, marking its second-largest BTC sale of the year. The proceeds were split equally, with $52.4 million funding dividend payments on Strategy’s STRC preferred stock and $52.3 million used to repurchase STRC. The company also raised $290.6 million through MSTR share sales, using $250 million to boost its US dollar reserve to $4 billion.
Why it matters
The sale of Bitcoin to fund dividends and repurchases signals Strategy’s approach to managing its financing mechanisms amid market conditions. The repurchase of STRC stock and increased dividend rate aim to support the preferred stock’s value, which is trading below its $100 target, potentially affecting the company’s ability to raise funds through STRC sales.
Key context
Strategy’s STRC preferred stock is a key financing tool for its Bitcoin purchases. The stock currently trades at a discount, and the company recently raised the dividend rate to 12% to attract buyers. Strategy’s Bitcoin sales earlier this year included a 3,588 BTC sale on July 6 and a smaller sale of 32 BTC in early June. CryptoQuant CEO Ki Young Ju previously advised the company to pause Bitcoin purchases and rebuild cash reserves after dividend coverage declined.
Key numbers and entities
Strategy sold 1,638 BTC at an average price of $63,957 for $104.7 million. The company holds 842,138 Bitcoin with an aggregate cost of $63.5 billion. It raised $290.6 million through MSTR share sales, increasing its US dollar reserve to $4 billion. STRC preferred stock trades at $89.40, 10.6% below the $100 target, and the dividend rate was raised to 12%. Strategy founder Michael Saylor highlighted repurchases totaling $81.2 million STRC stock and extended the US dollar runway to 2.3 years.
What remains unclear
The source does not flag open questions or provide detailed guidance on future Bitcoin sales or changes to Strategy’s overall capital strategy beyond recent announcements.