Strategy liquidated 1,638 BTC for approximately $105 million to fund preferred stock dividends and repurchase STRC shares, as its variable-rate preferred stock continues to trade at a notable discount to par.
According to a recent SEC 8-K filing, Strategy (Nasdaq: MSTR) — the bitcoin treasury firm led by Michael Saylor — disclosed the sale as part of its ongoing capital management efforts.
The proceeds are earmarked for dividend payments across its preferred stock classes, including STRC, STRK, STRD, STRF, and STRE, as well as for buybacks of STRC shares.
The transaction underscores a broader financial strategy rather than a simple asset sale. Strategy is actively managing its balance sheet by converting portions of its bitcoin holdings into liquidity while maintaining reserves to support a growing stack of preferred equity obligations.
Bitcoin Sale Context and Accumulation Slowdown
The company sold the bitcoin at an average price of about $64,000 per coin, well below its overall acquisition cost of $75,419. Despite carrying an estimated $10.9 billion unrealized loss, Strategy remains one of the largest corporate bitcoin holders globally, and the $105 million sale represents only a small share of its total position.
Notably, the move marks the sixth consecutive week without any bitcoin purchases, signaling a shift away from the aggressive accumulation strategy that previously defined the company.
Selling activity has accelerated in recent months. Strategy disposed of just 32 BTC in May 2026, followed by 3,588 BTC in early July for roughly $216 million, and now this latest tranche. In each case, proceeds have been directed toward servicing preferred stock obligations and share repurchases.
STRC Pressure: Discounts, Dividends, and Buybacks
Buybacks of STRC have become a key lever in Strategy’s capital structure. STRC — its Variable Rate Series A Perpetual Preferred Stock — carries a 12% annual dividend and a $100 par value, yet continues to trade below that level.
As of July 31, STRC closed at $89.46, reflecting a discount of around 10–11% despite offering its highest yield on record.
Originally issued in July 2025 with a 9% dividend, STRC has seen seven consecutive monthly increases, reaching 12% for record dates beginning July 1, 2026. This is driven by a ratchet mechanism that increases the dividend by 0.5% whenever the stock trades below $95. Once raised, the rate cannot be reduced.
Strategy resets the dividend monthly in an effort to push the share price closer to its $100 par value — a key condition for issuing new shares and raising fresh capital.
However, the ongoing discount has forced the company to suspend new STRC issuance under its at-the-market program, limiting its ability to fund additional bitcoin purchases through that channel.
Competitive pressures are also building. Rival firm Strive has introduced its SATA preferred security, offering roughly a 13% yield with daily payouts and no associated debt, drawing investor demand away from STRC.
