Strategy sells $108.6M Bitcoin to fund STRC buyback

Strategy sold another 1,690 Bitcoin last week and directed the entire $108.6 million in proceeds toward repurchasing its STRC preferred stock.

Strategy sells Bitcoin for a second straight week

An Aug. 10 filing with the U.S. Securities and Exchange Commission showed that Strategy sold 1,690 BTC between Aug. 3 and Aug. 9.

The sale generated $108.6 million in net proceeds, reflecting an average price of $64,262 per Bitcoin. Strategy used the entire amount to repurchase 1,152,020 shares of its Variable Rate Series A Perpetual Stretch Preferred Stock, or STRC.

The transaction lowered Strategy’s Bitcoin reserve to 840,447 BTC. The company acquired those coins for a combined $63.36 billion, including fees and expenses, at an average cost of $75,385 per BTC.

Strategy has now sold Bitcoin for two consecutive weeks. As crypto.news previously reported, the company sold 1,638 BTC for $104.7 million between July 27 and Aug. 2.

The earlier disposal funded $52.4 million in STRC dividends and $52.3 million in preferred-stock repurchases. Strategy’s latest filing shows it has continued prioritizing STRC support over new Bitcoin purchases.

STRC buybacks target the $100 par value

Strategy’s STRC preferred shares fell as low as roughly $72 in late June before recovering toward $95. The stock traded at $94.30 on Aug. 10, down 0.75% during the session but more than 30% above its June low.

The daily chart shows STRC facing immediate resistance near its 50-day moving average at $94.64. The 100-day average at $96.75 forms the next barrier before the security can retest its $100 stated value.

Momentum has improved, with Aroon Up reaching 100% while Aroon Down stood at 14.29%. However, a rejection below $96.75 could leave the stock vulnerable to a pullback toward its 20-day and 200-day averages around $89.33 and $89.62.

crypto.news previously reported that Strategy maintained STRC’s annual dividend rate at 12% for August. Management has said it wants the preferred stock to trade consistently near $100 before considering a lower rate.

Buying STRC below par also lets Strategy retire $100 of stated value for less than $100 while reducing the number of shares entitled to future distributions.

MSTR sales lift dollar reserve to $4.65 billion

Strategy separately sold 6,585,329 MSTR common shares through its at-the-market offering programs. These transactions produced approximately $653.1 million in net proceeds.

The company allocated $650 million to its U.S. dollar reserve and added the remaining $3.1 million to its unrestricted cash balance. Its dollar reserve consequently increased from about $4 billion to $4.65 billion.

Strategy had already built a $3.75 billion cash cushion by late July. The reserve is intended to support preferred-stock dividends and interest payments, although its board retains authority over how the funds are used.

The company also indicated that it could begin selling shares under a new $21 billion MSTR offering after exhausting the remaining capacity under its current program. Continued issuance would provide additional liquidity but increase the number of common shares outstanding.

Bitcoin weakness adds pressure to MSTR

MSTR traded below the psychological $100 level as Bitcoin struggled to establish a sustained breakout above $65,000. Strategy’s average Bitcoin acquisition price of $75,385 leaves its reserve below cost at current market levels.

The company remains the largest publicly disclosed corporate Bitcoin holder despite its recent sales. Future weekly SEC filings will show whether Strategy continues reducing its Bitcoin position to support STRC or shifts back toward accumulation as the preferred stock approaches par.

The latest sales come as Strategy marks six years since beginning its Bitcoin treasury strategy. In a Aug. 10 X post, Bitcoin Treasuries highlighted that Strategy’s holdings have grown nearly twelvefold, from 70,470 BTC in 2020 to 840,447 BTC, despite the recent weekly reductions.