Company utilising STRC preferred stock sales to finance dividend payouts and stock buybacks, bolstering its USD reserve.
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Strategy has executed a significant sale of Bitcoin holdings generating funds for shareholder returns and strengthening its financial position. The company, led by Michael Saylor, sold 1,638 Bitcoin between July 27 and Sunday, completing a strategy designed to return capital to investors. This activity is facilitated by the company’s use of STRC preferred stock to finance these operations.
According to data from CryptoQuant, CEO Ki Young Ju reportedly advised pausing Bitcoin purchases due to Strategy’s financial situation. The sale generated $104.7 million in proceeds, with $52.4 million allocated towards dividend payments on the STRC preferred stock and another $52.3 million used to repurchase shares of its own stock. This purchase reinforces the company’s holdings at 842,138 Bitcoin.
The sale also contributed significantly to Strategy’s growing USD reserve, which currently stands at $4 billion as of Sunday. The company had previously sold approximately 3,588 Bitcoin on July 6 for roughly $216 million and an additional 32 Bitcoin in early June. This strategy has enabled Strategy to raise a total of $290.6 million through MSTR share sales over the same period.
A substantial portion of these funds was utilized to increase the USD reserve, with $250 million dedicated to this purpose. An additional $28.9 million funded STRC repurchases and $11.7 million added directly to Strategy’s cash balance. The average sale price for the recently sold Bitcoin was $63,957 per unit.
Strategy’s total expenditure on acquiring Bitcoin now amounts to $63.5 billion. The company’s trading price of STRC stock reached $89.40 during pre-market trading on Monday, reflecting a 10.6% difference from its target value and extending the company’s runway by approximately 2.3 years. The dividend coverage previously stood at 7 years and had fallen to 14 months.
Written by Rebecca Shaw
Industry Desk
