Strategy liquidates Bitcoin to fuel preferred stock buybacks

The latest divestment, executed between Aug. 3 and Aug. 9 at an average price of $64,262 per coin, brings the company's total Bitcoin holdings to 840,447 BTC. These assets were acquired at an average cost of $75,385, positioning the firm’s current reserve below its total investment of $63.36 billion. This follows a similar move the previous week, where the company offloaded 1,638 BTC to cover both STRC dividends and share repurchases.

Management is aggressively targeting the $100 par value for STRC shares, which have climbed over 30% from their June lows to trade near $94.30. By purchasing the stock below par, the firm retires $100 of stated value at a discount while simultaneously reducing future dividend obligations. Alongside these moves, Strategy raised $653.1 million through the sale of 6.59 million MSTR common shares, boosting its liquid dollar reserve to $4.65 billion. While this cash cushion provides significant flexibility for interest payments and dividends, the board maintains full discretion over the capital allocation, leaving open the possibility of further share issuances or shifts back to Bitcoin accumulation.