Key Points
- Strategy sold 1,638 BTC for $105 million to fund preferred dividends and buybacks.
- STRC dividend climbed to 12% as shares trade below $100 par value.
Strategy (Nasdaq: MSTR) disclosed the sale of 1,638 Bitcoin (BTC) for about $105 million in an 8-K filing with the U.S. Securities and Exchange Commission.
The company said the proceeds will support dividend payments across several preferred stock classes, including STRC, STRK, STRD, STRF, and STRE, and fund repurchases of STRC preferred shares.
The transaction reflects an adjustment of capital allocation, combining digital asset monetization with reserve management to meet obligations tied to its preferred equity structure.
BTC Sale Details and Accumulation Pause
Strategy sold the 1,638 BTC at an average price near $64,000 per coin, below its reported aggregate acquisition cost of $75,419.
Despite the sale and an estimated multi-billion-dollar unrealized loss, the company remains among the largest corporate holders of Bitcoin, with the transaction representing a limited portion of total holdings.
The move marks the sixth consecutive week without a new BTC purchase, diverging from the firm’s prior pattern of consistent accumulation.
Earlier in 2026, Strategy sold 32 BTC in May and 3,588 BTC in July for approximately $216 million, directing proceeds toward preferred dividends and additional STRC repurchases.
STRC Preferred Stock and Dividend Structure
STRC, designated as the Variable Rate Series A Perpetual Preferred Stock, currently carries a 12% annual dividend and a stated par value of $100 per share.
As of July 31, the shares closed at $89.46, reflecting a discount of roughly 10% to 11% to par.
Launched in July 2025 with a 9% dividend rate, STRC has recorded seven consecutive monthly increases under a ratchet mechanism that adds 0.5% whenever the stock trades below $95.
Once triggered, dividend increases remain in effect even if the share price recovers above the threshold.
Strategy adjusts the monthly rate to support trading levels closer to par, a requirement for issuing new STRC shares and raising additional capital.
The ongoing discount has led the company to pause new STRC issuance under its at-the-market program, limiting this funding avenue for further BTC acquisitions.
Market competition has also intensified, with alternative preferred products offering higher yields and different structural features that may attract investor demand.
