Strategy, formerly known as MicroStrategy, disclosed a significant Bitcoin (BTC) sale on Monday, offloading 1,690 BTC for $108.6 million to fund buybacks of its STRC preferred stock. Led by executive chairman Michael Saylor, the company remains the largest corporate holder with 840,447 BTC in its treasury. However, recent market dynamics have forced the firm to sell coins below cost to repair a preferred security that has struggled to maintain its intended par value.
Inside the Latest Strategy Bitcoin Sale
The transaction executed between August 3 and August 9 involved an average price of $64,262 per coin, according to a Form 8-K filing submitted to the US Securities and Exchange Commission (SEC). Net proceeds from the offloaded digital assets directly financed the repurchase of 1,152,020 shares of STRC. This variable-rate perpetual preferred stock was originally issued to support the company’s aggressive Bitcoin accumulation strategy, featuring a monthly resetting dividend currently set at a 12% annualized rate to anchor shares near a $100 par value.
Market resistance has persisted against the security’s design, with STRC closing at $95.01 after dipping as low as $71.25 over the past year. This latest move marks consecutive weeks as a net seller, following a previous disposal of 1,638 BTC. With the remaining stack carrying a total cost basis of $63.36 billion—averaging $75,385 per coin—every sale near current market levels locks in a tangible loss.
MSTR Share Sales Lift the USD Reserve
Alongside digital asset liquidations, Strategy raised $653.1 million through the sale of 6,585,682 MSTR shares via its at-the-market equity program, routing $650 million directly into its USD reserve to push total cash reserves to $4.65 billion. Michael Saylor framed the financial maneuvers as a credit management exercise rather than a retreat from cryptocurrency commitments. Writing on social media, Saylor emphasized that the firm increased its USD Reserve and tightened STRC’s credit metrics while maintaining a massive holdings baseline.
The Digital Credit Capital Framework Explained
The strategic shift stems from the Digital Credit Capital Framework adopted in late June, which permits controlled Bitcoin liquidations to sustain preferred dividends and cash reserves when issuing fresh equity becomes less favorable. While the repair effort has helped STRC recover roughly 33% from its previous lows, ongoing distributions and multi-million dollar buybacks continue to navigate a challenging macroeconomic environment as broader crypto markets trade below the company’s average acquisition thresholds.
