Coinspeaker
15 hour ago
Bearish

Strategy sells 1,638 BTC to fund dividends and STRC buybacks

3 min

Strategy (Nasdaq: MSTR) disclosed the sale of 1,638 BTC for approximately $105 million in an 8-K filing with the SEC. The company plans to use proceeds to fund dividends on preferred stock classes STRC, STRK, STRD, STRF, and STRE, and to repurchase STRC preferred shares.

BTC Sale Details and Shift in Accumulation

Strategy sold the BTC at an average price near $64,000 per coin. The firm’s all-in average acquisition cost stands at $75,419, implying realization below cost and an unrealized loss position of $10.9 billion across the treasury. Despite the sale, Strategy remains one of the largest corporate bitcoin holders, and the $105 million disposition constitutes a small share of its holdings.

The company has paused BTC accumulation for six weeks. Sales have accelerated: 32 BTC in May 2026, 3,588 BTC in early July for about $216 million, and the latest 1,638 BTC. Management frames the actions as capital structure management: monetizing BTC and reallocating reserves to meet rising cash obligations on preferred stock and to repurchase discounted STRC shares.

STRC Preferred: Buyback Rationale and Dividend Mechanics

STRC, Strategy’s Variable Rate Series A Perpetual Preferred Stock, carries a 12% annual dividend on a $100 stated value and has been trading below par. It closed at $89.46 on July 31, roughly 10–11% below par despite the record-high rate.

Launched in July 2025 at 9%, STRC’s dividend has increased via a ratchet: 0.5% increments when the market price falls below $95. Once raised, the rate does not decrease if the price later recovers. The rate reached 12% for record dates beginning July 1, 2026.

Source: STRCUSD / Tradingview

Strategy uses monthly resets to steer STRC’s price back toward $100, a level needed to issue new STRC and raise capital. The persistent discount has paused new STRC issuance under the at-the-market program, limiting that funding channel for additional BTC purchases.

Competitive pressure has increased. Rival Strive’s SATA preferred reportedly offers about a 13% yield with daily dividends and no underlying debt, drawing demand away from STRC.

Net effect: Strategy is prioritizing liquidity and preferred obligations through selective BTC sales and buybacks. The halt in BTC accumulation and realized sales below cost signal near-term balance sheet management over treasury expansion.