Strategy sells 1,638 Bitcoin to pay dividends and repurchase preferred stock

Strategy sold 1,638 Bitcoin between July 27 and the following Sunday at an average price of $63,957, generating $104.7 million. The company allocated $52.4 million from the proceeds to dividend payments on its STRC preferred stock and $52.3 million toward STRC repurchases, according to an 8-K filing with the Securities and Exchange Commission.

This sale represents the company's second-largest Bitcoin reduction of the year, following a July 6 sale of 3,588 Bitcoin worth approximately $216 million. Strategy now holds 842,138 Bitcoin at an aggregate cost of $63.5 billion.

During the same period, Strategy raised $290.6 million through MSTR share sales. It deployed $250 million to increase its US dollar reserve to $4 billion, while allocating $28.9 million to STRC repurchases and $11.7 million to cash. According to Michael Saylor's public statement, the company repurchased $81.2 million in STRC stock and extended its dollar runway by 57 days to 2.3 years.

Strategy's STRC preferred stock traded at $89.40 during Monday's pre-market session, reflecting a 10.6% discount to its $100 par value. This below-par trading may constrain the company's future funding capacity through STRC sales and could pressure it to raise dividend rates to attract buyers. Earlier analysis from CryptoQuant suggested Strategy should pause Bitcoin acquisitions to rebuild cash reserves, citing a decline in dividend coverage from seven years to 14 months.