MicroStrategy sells 1,638 BTC for $104.7 million to fund STRC dividends and buybacks

MicroStrategy sold 1,638 Bitcoin for $104.7 million late last month, using the proceeds to support its STRC perpetual preferred stock and bolster liquidity, according to SEC filings. Between July 27 and Aug. 2, the company sold 1,638 BTC at an average price of $63,957. It directed $52.4 million to STRC dividend payments and $52.3 million to repurchasing STRC shares. Following the sale, MicroStrategy held 842,138 BTC, acquired for a total cost of roughly $63.5 billion. During the same period, MicroStrategy also raised $290.6 million by selling MSTR common shares. The company added $250 million to its U.S. dollar reserve, spent $28.9 million on additional STRC repurchases and allocated $11.7 million to increase cash. Executive Chairman Michael Saylor said on X that MicroStrategy repurchased $81.2 million of STRC over the period and extended its U.S. dollar funding runway by 57 days to about 2.3 years. He added the company now holds ₿842,138 and around $4.0 billion in its USD reserve. The actions follow a capital framework introduced at the end of June that explicitly allows Bitcoin sales to fund preferred dividends, debt obligations, approved repurchases and the firm's dollar reserve. The policy marks a shift from MicroStrategy's earlier posture of channeling most available cash into additional BTC purchases. STRC remains central to MicroStrategy's fundraising strategy. Yet the preferred traded around $89.40 in Monday premarket trading, about 10.6% below its $100 stated value, making discounted issuance a less efficient funding source. Management has said it wants STRC closer to par before resuming more aggressive Bitcoin accumulation. The company has increased the pace of Bitcoin disposals this summer. In early July, it sold 3,588 BTC (about $216 million) on July 6 and also disclosed a 32 BTC sale in early June, its first reported Bitcoin sales since a tax-related transaction in 2022. On the Q2 earnings call (July 31), Saylor said MicroStrategy would no longer deploy every dollar immediately into Bitcoin. CEO Phong Le said the firm would pause new BTC purchases while STRC trades below its $100 stated value. By July 26, MicroStrategy had built a $3.75 billion USD reserve; subsequent stock sales lifted that figure to about $4 billion. Management said the reserve is intended primarily to cover preferred dividends and debt obligations unless the board approves other uses. On dividends and buybacks, MicroStrategy kept STRC's annual dividend rate at 12% for August despite the preferred trading below par. A June 29 policy revision shifted dividend decisions to consider market price, competing yields, Bitcoin volatility, credit spreads and cash-reserve coverage rather than automatically increasing payouts whenever STRC trades under $100. The company has leaned more heavily on discounted STRC buybacks instead of repeated dividend hikes. Filings show roughly $25 million of STRC repurchases between July 20 and July 26, with nearly $1 billion remaining under its preferred-securities repurchase authorization. Market commentary has been mixed. CryptoQuant founder Ki Young Ju urged a temporary pause in Bitcoin buying to rebuild cash reserves and adopt a more systematic purchase framework. MicroStrategy reported an $8.22 billion net loss in Q2, driven by an $8.32 billion unrealized fair-value loss on its Bitcoin holdings. Management said the accounting loss does not change its long-term Bitcoin strategy, while emphasizing that restoring STRC closer to $100 is a near-term priority before ramping up new BTC purchases. Benchmark and H.C. Wainwright maintained buy ratings following the quarter, though Benchmark reduced its price target. Analysts pointed to the larger cash reserve, preferred-share repurchases and a clearer financing playbook as potential positives for future capital raising, while noting the company remains closely tied to Bitcoin prices and demand for STRC. MicroStrategy is trimming a small portion of its Bitcoin position and issuing MSTR stock to reinforce liquidity and stabilize STRC, aiming to preserve funding flexibility and potentially resume BTC accumulation when market conditions improve.