MicroStrategy disclosed that it sold 1,638 Bitcoin for $104.7 million late last month, directing the bulk of proceeds to strengthen liquidity and support its perpetual preferred stock STRC, according to an SEC filing and updates from executives. The company sold the Bitcoin between July 27 and Sunday at an average price of $63,957 per BTC. Of the $104.7 million raised, $52.4 million went to fund dividends on STRC, while $52.3 million was used to repurchase STRC shares. Following the sale, MicroStrategy said its Bitcoin reserve totals 842,138 BTC, purchased for an aggregate cost of about $63.5 billion. Over the same period, the company also sold $290.6 million of MSTR common stock. It allocated $250 million to its U.S. dollar reserve, used $28.9 million for additional STRC buybacks, and added $11.7 million to cash on hand. Executive chairman Michael Saylor wrote on X that MicroStrategy repurchased $81.2 million of STRC during the period and extended its U.S. dollar funding runway by 57 days to roughly 2.3 years. He said the firm now holds ₿842,138 in its BTC reserve and about $4.0 billion in its USD reserve. The transactions follow a capital framework introduced at the end of June that explicitly allows Bitcoin sales to cover preferred dividends, service debt, execute approved buybacks, and build the USD reserve. MicroStrategy previously sold 3,588 BTC for about $216 million on July 6 and disposed of 32 BTC in early June, marking its first Bitcoin sales since a 2022 tax-related transaction. On the July 31 Q2 earnings call, management signaled a shift in capital allocation: the company will no longer deploy every available dollar into Bitcoin. CEO Phong Le said MicroStrategy will pause additional Bitcoin purchases while STRC trades below its $100 stated value, with the board prioritizing larger cash buffers. STRC remains central to the company's fundraising strategy, making its market price important for future capital raises. As of Monday premarket, STRC traded around $89.40, roughly 10.6% below par, while MSTR shares were modestly lower. MicroStrategy kept STRC's annual dividend rate at 12% for August despite the discount. A policy change dated June 29 shifts dividend decisions to consider market price, competing yields, Bitcoin volatility, credit spreads, and cash reserve coverage, rather than automatically raising payouts whenever STRC trades under par. Management has increasingly leaned on repurchasing STRC at discounted prices instead of repeatedly lifting dividends. Filings show about $25 million in STRC repurchases between July 20–26, with nearly $1 billion still available under the existing buyback authorization. The company's recent moves—selling some BTC, raising cash through MSTR share sales, building a roughly $4 billion USD reserve, and buying back discounted STRC—are aimed at improving liquidity and preserving financing flexibility. Executives have said restoring STRC closer to its $100 stated value is a priority before resuming more aggressive Bitcoin accumulation. The pivot comes amid outside calls for MicroStrategy to slow purchases and rebuild cash cushions. CryptoQuant founder Ki Young Ju said on X that the company should "pause Bitcoin purchases, rebuild cash reserves, and adopt a systematic framework," warning that dividend coverage had tightened. MicroStrategy reported an $8.22 billion net loss in Q2, largely reflecting an $8.32 billion unrealized accounting loss on its Bitcoin holdings under fair-value rules. Management said the accounting impact does not change its long-term Bitcoin strategy. Benchmark and H.C. Wainwright maintained buy ratings after the quarter, though Benchmark reduced its price target. Both firms pointed to the larger cash reserve, preferred buybacks, and strengthened financing posture as potential positives for future capital raising, while noting the outlook remains closely tied to Bitcoin prices and investor demand for STRC. MicroStrategy's bottom line: the company is temporarily reducing Bitcoin exposure to support preferred dividends, repurchase discounted STRC, and expand its dollar reserve—a deliberate shift toward liquidity and financing stability that it says could improve fundraising capacity and enable future Bitcoin purchases once STRC recovers and funding flexibility improves.