Strategy Sells $105M Bitcoin, Reaches $4B USD Reserve

Strategy sold 1,638 bitcoin for $104.7 million in the week ending August 2, reducing its holdings to 842,138 BTC from 843,775 BTC held since early July. The coins sold at an average price of $63,957 net of fees, below Strategy's aggregate cost basis of $75,419 per bitcoin.

Proceeds from the sale were split between preferred dividends and a share buyback. The company allocated $52.4 million to dividend payments on preferred stock while deploying $81.2 million toward repurchasing 912,143 STRC shares, with an additional $28.9 million for the buyback coming from common stock sales. This is the second purchase under a $1 billion repurchase programme announced in June, with $893.8 million in authorisation remaining.

Strategy also expanded its USD reserve by $250 million, bringing it to $4 billion. The company extended what it terms its USD duration by 57 days to 2.3 years and tightened its Bitcoin credit spread by five basis points. It maintained its preferred dividend rate at 12 per cent annually.

The sales represent a continued shift in Strategy's approach to its bitcoin holdings. The company abandoned its long-standing "never sell" policy in May and established a capital framework in June that allows for up to $1.25 billion in Bitcoin disposals. Including the previous month's $216 million in sales, Strategy has now used $321 million of that capacity. The firm has not purchased bitcoin since June and has instead grown its dollar reserves through share sales to meet $1.76 billion in annual dividend obligations.