Strategy Bitcoin sale activity continued last week as the company sold 1,690 BTC for $108.6 million and directed all proceeds toward repurchasing STRC preferred shares.
Strategy also raised $653.1 million through common stock sales, lifting its dollar reserve to $4.65 billion.
The transactions were disclosed in a Form 8-K filed with the SEC on Monday. Despite the sale, Strategy remains the largest corporate Bitcoin holder with 840,447 BTC. Twenty One Capital ranks second with 43,514 BTC.
Strategy Directs Bitcoin Proceeds to STRC Repurchases
Strategy sold 1,690 Bitcoin between August 3 and August 9 at an average price of $64,262 each. The $108.6 million generated funded the repurchase of 1,152,020 STRC shares.
STRC is Strategy’s variable-rate Series A perpetual Stretch preferred stock. The transaction marks its third STRC buyback under the Digital Credit Securities Repurchase Program.
Strategy introduced the $1 billion program on June 29 under its Digital Credit Capital Framework. It still has discretion to use another $785.2 million for STRC repurchases under the existing program.
The company separately sold 6,585,682 MSTR shares through its at-the-market program, raising $653.1 million. Strategy allocated $650 million to its USD reserve and $3.1 million to cash accounts.
STRC Moves Toward Management Target
Strategy’s USD reserve increased from $4 billion to $4.65 billion in one week. The reserve is dedicated to preferred dividend and interest obligations.
STRC traded at $95.55 in pre-market trading, according to Google Finance. Management has sought to bring the preferred shares closer to their $100 par value.
The stock has moved closer to management’s preferred range compared with its July lows. Strategy has made restoring STRC toward its $100 par value a priority during recent weeks.
Chief Executive Phong Le said during the second-quarter call that the goal is for STRC “to trade over time at $99 to $100.”
Michael Saylor said Monday that the latest repurchase tightened STRC’s “BTC Credit” by 10 basis points, equal to one-tenth of a percentage point.
Saylor also said the raise increased Strategy’s “USD Duration” by 143 days to 2.7 years. The measure reflects how long the reserve can fund preferred dividends and interest.
Strategy Extends Shift From Bitcoin Accumulation
The sale continues a shift that began at the end of May, when Strategy sold 32 Bitcoin for about $2.5 million. That was its first Bitcoin sale since December 2022.
A capital framework unveiled in June authorized up to $1.25 billion in Bitcoin disposals. Strategy has now used about $429 million of that capacity.
The company has not bought Bitcoin since June. It also retains $1 billion under a separate MSTR common-stock repurchase program.
Saylor rejected the view that Strategy has become a long-term seller. In a July 31 post, he wrote that Strategy has “never had a ‘never sell’ policy” and expects “to remain a net buyer of Bitcoin over time.”
