Strategy Liquidates 1,638 Bitcoin to Pay Dividends, Buy STRC Back

Strategy sold 1,638 Bitcoin between July 27 and Sunday, according to an 8-K filing released Monday with the U.S. Securities and Exchange Commission. The sale, carried out at an average price of $63,957 per BTC, generated about $104.7 million—making it the company’s second-largest Bitcoin selloff of the year.

Strategy said the proceeds were split between its preferred-stock dividend program and its STRC share repurchase activity. Following the transaction, the company reported holding 842,138 Bitcoin, purchased at an aggregate cost of $63.5 billion.

Key takeaways

• Strategy’s latest disclosed Bitcoin sale totaled 1,638 BTC at an average of $63,957, raising roughly $104.7 million.
• About $52.4 million of the proceeds was used for dividends on STRC preferred stock, with $52.3 million directed to STRC repurchases.
• Strategy also reported increasing its US dollar reserve to $4 billion as of Sunday, funded in part by MSTR share sales.
• STRC traded below its $100 target value in Monday pre-market trading, a condition that can affect Strategy’s financing flexibility.
• The filing comes amid renewed commentary from industry observers urging Strategy to prioritize cash reserve replenishment over additional BTC buys.

Bitcoin sales fund dividends and STRC buybacks

In the Monday SEC filing, Strategy detailed the July 27–Sunday sale of 1,638 BTC and the resulting proceeds. The company reported using $52.4 million to cover dividend payments on its STRC preferred stock and $52.3 million to repurchase STRC shares.

While this latest selloff follows earlier activity, it is not Strategy’s first major Bitcoin sale this year. The company previously disclosed selling 3,588 BTC for about $216 million on July 6, as covered earlier. It also reported selling 32 BTC in early June, which it described as its first reported BTC sale since a 2022 tax-loss transaction, according to earlier coverage referenced in the filing materials.

The decision matters for investors watching how Strategy balances its core goal—maintaining Bitcoin exposure—with the practical need to support dividend obligations and preferred-share economics. When BTC is sold to meet shareholder payouts, investors often scrutinize whether the company’s capital framework preserves the intended pace of future Bitcoin accumulation.

US dollar reserve rises to $4 billion after equity-related funding

Beyond the Bitcoin sale, Strategy reported raising $290.6 million through MSTR share sales during the same period. According to the filing, $250 million of those proceeds was earmarked to increase its US dollar reserve, which stood at $4 billion as of Sunday. The company also allocated $28.9 million for STRC repurchases and $11.7 million to its cash balance.

In a Monday post on X, Strategy founder and chairman Michael Saylor said the company repurchased $81.2 million worth of STRC stock and extended its US dollar runway by 57 days to 2.3 years. The runway estimate is important because it reflects how long Strategy can continue executing its stated capital approach—particularly dividend-related payments—without being forced to accelerate either Bitcoin sales or external funding.

STRC below target value raises questions about financing conditions

Strategy’s STRC perpetual preferred stock functions as one of the company’s tools for financing Bitcoin purchases. However, in Monday pre-market trading, Yahoo Finance data showed STRC at $89.40, or 10.6% below its $100 target value. Strategy’s common stock, MSTR, was also down slightly in pre-market trading, declining 0.9%.

Trading below the intended par can influence Strategy’s ability to raise funds through STRC sales. It may also affect the company’s incentive to adjust dividend levels to make STRC more attractive to prospective buyers and help stabilize the preferred-stock market price.

This is not a purely theoretical concern. Investors have previously focused on dividend coverage and cash planning as part of Strategy’s broader capital strategy. In a June 24 X post, CryptoQuant CEO Ki Young Ju argued that Strategy should pause further Bitcoin purchases and rebuild cash reserves, after the company’s dividend coverage fell to 14 months from seven years, based on the reporting tied to that commentary. Ju said the company should adopt a systematic framework for purchase timing.

Earlier, Strategy had also laid out a capital framework in an 8-K filing dated June 29. That disclosure included an approach in which Bitcoin sales can fund dividends, an increase of STRC’s annual dividend rate to 12%, and a report that the US dollar reserve had grown to $2.55 billion.

What to watch next

With Strategy reporting both a sizable Bitcoin sale and a significant rise in its US dollar reserve to $4 billion, the near-term question for investors is how sustainably the company can fund dividends and preferred-share repurchases while maintaining its desired Bitcoin exposure. Traders should watch STRC’s trading price relative to its $100 target and monitor whether Strategy’s stated runway and purchase timing adjustments continue to evolve in future filings.