Strategy Sells 1,638 BTC to Fund Dividends and Buybacks

Strategy, the Bitcoin-focused company led by Michael Saylor, sold 1,638 Bitcoin between July 27 and Sunday in its second-largest BTC disposal of the year. The sales, disclosed in an 8-K filing with the Securities and Exchange Commission, raised $104.7 million and were allocated to dividend payments and repurchases of the company’s perpetual preferred stock, STRC.

Sale details and allocations

Transaction breakdown

The filing states Strategy sold 1,638 BTC at an average price of $63,957 per coin, netting approximately $104.7 million. Roughly half the proceeds, $52.4 million, funded dividend distributions on STRC preferred shares, while the remaining $52.3 million financed STRC repurchases. The company now reports holdings of 842,138 Bitcoin with an aggregate cost basis of $63.5 billion.

Recent selling history

This sale follows earlier BTC dispositions: Strategy sold 3,588 Bitcoin on July 6 for about $216 million and disclosed a smaller 32 BTC sale in early June. Those moves mark the firm’s first regular sales after its 2022 tax-loss transaction and reflect an evolving capital-management approach.

STRC stock price, 1-day chart.

Capital management, MSTR sales and USD reserve

Strategy also disclosed raising $290.6 million by selling shares of MSTR during the same time frame. Of that amount, $250 million was added to the company’s US dollar reserve, which reached $4 billion as of Sunday. An additional $28.9 million was used for further STRC repurchases and $11.7 million bolstered the firm’s cash balance.

Michael Saylor noted on X that Strategy repurchased $81.2 million worth of STRC stock and extended the company’s US dollar runway by 57 days, bringing the cash runway to about 2.3 years.

Market reaction and STRC dynamics

STRC trading and financing implications

During Monday pre-market trading, STRC was quoted at $89.40, around 10.6% below its $100 target par. The company’s MSTR equity also slipped 0.9% in pre-market activity. STRC functions as a financing mechanism for additional Bitcoin purchases; trading below par can reduce Strategy’s ability to raise capital via STRC issuance and may pressure management to raise dividend yields to attract buyers.

Context and governance changes

In late June, Strategy published a capital framework that explicitly allows Bitcoin sales to fund dividend payments. The firm also raised STRC's annual dividend rate to 12% and reported a US dollar reserve of $2.55 billion in an 8-K dated June 29. Industry observers have weighed in: CryptoQuant CEO Ki Young Ju recommended pausing Bitcoin purchases and rebuilding cash reserves after dividend coverage metrics narrowed from a multi-year horizon to about 14 months.

What this means for investors

The latest sales and repurchase activity highlight Strategy’s dual focus on returning capital to preferred holders while maintaining a large BTC treasury and a sizable USD reserve. For crypto investors and market watchers, the moves underscore ongoing trade-offs between balance-sheet liquidity, dividend commitments, and longer-term Bitcoin accumulation strategy. Expect further scrutiny of STRC pricing, dividend policy, and any additional BTC sales disclosed in future SEC filings.