MicroStrategy sold 1,638 Bitcoin for $104.7 million late last month as part of a broader shift toward shoring up liquidity and supporting its perpetual preferred stock, SEC filings show. What happened - Between July 27 and Aug. 2, MicroStrategy sold 1,638 BTC at an average price of $63,957, generating $104.7 million in proceeds. - The company allocated $52.4 million to dividend payments on its STRC perpetual preferred stock and $52.3 million to repurchasing STRC shares. - After the sale, MicroStrategy’s BTC reserve stood at 842,138 coins, acquired at a combined cost of roughly $63.5 billion. Concurrent equity moves - During the same reporting period the company raised $290.6 million by selling MSTR common shares. - Of that, $250 million was added to MicroStrategy’s U.S. dollar reserve, $28.9 million went to additional STRC repurchases and $11.7 million boosted its cash balance. - MicroStrategy’s Executive Chairman Michael Saylor said on X that the company repurchased $81.2 million of STRC during the period and extended its U.S. dollar funding runway by 57 days — to about 2.3 years. Saylor posted that the company now holds ₿842,138 and roughly $4.0 billion in its USD reserve. Why it matters - The move follows a capital framework MicroStrategy introduced at the end of June that explicitly permits Bitcoin sales to fund preferred-stock dividends, debt obligations, approved repurchases and the company’s dollar reserve. It signals a notable pivot from the company’s previous approach of directing most available cash into additional BTC purchases. - The STRC preferred security is an important fundraising tool for MicroStrategy. But STRC traded around $89.40 in Monday pre-market sessions — about 10.6% below its $100 stated value — which makes raising fresh capital via discounted preferred sales less efficient. Management has said it wants STRC closer to par before resuming more aggressive Bitcoin accumulation. Recent context and policy shifts - Earlier in July, MicroStrategy sold 3,588 BTC (~$216 million) on July 6 and disclosed a sale of 32 BTC in early June — its first reported Bitcoin disposals since a tax-related sale in 2022. - On the Q2 earnings call (July 31), Saylor said the company would no longer funnel every dollar into immediate Bitcoin purchases. CEO Phong Le added the firm would pause new BTC buys while STRC trades below its $100 stated value. - By July 26 the company had accumulated a $3.75 billion USD reserve; the latest stock sales have boosted that to about $4 billion. Management says the reserve is intended primarily to cover preferred dividends and debt obligations unless the board approves other uses. Dividend and buyback strategy - MicroStrategy kept STRC’s annual dividend rate at 12% for August despite STRC trading below par. Under a June 29 policy revision, dividend decisions now weigh 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 into discounted repurchases of STRC rather than repeated dividend hikes. Disclosures show roughly $25 million of STRC buybacks between July 20 and July 26, and nearly $1 billion remains available under its preferred-securities repurchase authorization. Market and analyst reaction - Commentators including CryptoQuant founder Ki Young Ju urged a temporary pause in Bitcoin buying to rebuild cash reserves and adopt a 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 says the accounting loss does not alter its long-term Bitcoin strategy, but executives emphasized restoring STRC closer to $100 as a priority before ramping up new BTC purchases. - Benchmark and H.C. Wainwright kept buy ratings on MicroStrategy after the quarter, though Benchmark trimmed its price target. Analysts noted that the company’s larger cash reserve, preferred-share repurchases and financing playbook could improve future capital-raising, even as the firm’s prospects remain tightly linked to Bitcoin prices and demand for STRC. Bottom line MicroStrategy is actively trimming a small portion of its Bitcoin holdings and selling MSTR stock to beef up liquidity and stabilize its preferred security, positioning itself to preserve funding flexibility and potentially resume BTC accumulation under more favorable conditions.
MicroStrategy Sells 1,638 BTC for $104.7M to Fund STRC Dividends and Buybacks
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Summary
MicroStrategy sold 1,638 BTC for $104.7M in late July to fund STRC dividends and buybacks. The firm used $52.4M for dividends and $52.3M for repurchases. It also raised $290.6M from MSTR share sales, adding $250M to USD reserves. The company now holds 842,138 BTC and $4B in cash. The move aligns with a new capital framework that allows Bitcoin sales to meet obligations. STRC trades below $100, so management is focusing on support and resistance levels to stabilize the stock before resuming aggressive BTC buying. The risk-to-reward ratio remains a key factor in the company’s current strategy.
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