Strategy, the Bitcoin-focused treasury company formerly known as MicroStrategy, disclosed on Monday that it sold 1,638 BTC for approximately $104.7 million, extending a five-week streak in which it has trimmed rather than added to its holdings. The prolonged pause marks the company's longest break from accumulation since it began purchasing Bitcoin in August 2020.

In a filing with the U.S. Securities and Exchange Commission, the company reported that the Bitcoin sales occurred between July 27 and August 2 at an average price of $63,957 per coin. The proceeds were allocated across two obligations: $52.4 million toward dividends on its preferred stock and $52.3 million to fund repurchases of its Stretch (STRC) preferred shares.

The pattern of reducing Bitcoin holdings rather than accumulating them began earlier this summer, as Strategy increasingly relied on equity sales and cash management to meet its financial commitments. The shift comes with Bitcoin trading well below Strategy's average acquisition cost of roughly $75,400 per coin, leaving the company's holdings valued at approximately $54 billion against a $63.51 billion aggregate cost basis.

The same SEC filing revealed that Strategy sold 3,011,361 shares of its MSTR common stock through its at-the-market (ATM) program during the period, generating $290.6 million in net proceeds. Of that amount, $250 million was directed into the company's USD Reserve — a liquidity buffer earmarked for preferred dividends and debt interest — bringing the reserve to $4 billion.

Additionally, Strategy repurchased 912,143 STRC shares for $81.2 million during the week, continuing a buyback initiative launched in late June. No shares of its other preferred instruments — Strife (STRF), Strike (STRK), or Stride (STRD) — were repurchased or sold under the ATM program during this reporting window.

Strategy's board maintained the STRC dividend rate at 12% annually, declaring $0.50-per-share distributions for the periods ending August 31 and September 15. Management stated it does not plan to recommend a rate reduction until STRC trades sustainably near its $100 stated value.

The company continues to hold 842,138 Bitcoin on its balance sheet, valued at approximately $54 billion based on Monday's price near $64,000 per coin. Its aggregate acquisition cost for the holdings stands at $63.51 billion.

Despite the consecutive weeks of sales, Strategy has maintained that its long-term Bitcoin posture is unchanged. CEO Phong Le has said the company intends to remain a long-term Bitcoin buyer notwithstanding its recent divestments.

Strategy — originally MicroStrategy — began purchasing Bitcoin in August 2020 as a treasury reserve strategy designed to enhance shareholder returns during the pandemic. Since then, it has deployed more than $63.5 billion to accumulate the asset and remains the world's largest corporate Bitcoin holder by a wide margin. Its approach has inspired numerous companies to adopt similar crypto-treasury strategies, making its current selling streak a closely watched signal across the sector.

Source: Bitcoin Magazine