Strategy sold 1,638 Bitcoin between July 27 and Sunday, marking its second-largest BTC sale of the year, according to a Monday 8-K filing with the Securities and Exchange Commission. The transaction adds to a pattern of disposals that marks a notable shift for a company whose aggressive accumulation strategy made it the largest publicly traded corporate holder of Bitcoin.

The Bitcoin was sold at an average price of $63,957—roughly 15% below the company's average acquisition cost of approximately $75,400 per Bitcoin across its remaining holdings—for total proceeds of $104.7 million. Of that amount, $52.4 million went toward dividend payments on Strategy's STRC preferred stock, while $52.3 million was used to repurchase STRC shares. Following the sale, the company holds 842,138 Bitcoin acquired at an aggregate cost of $63.5 billion.

The sale follows two earlier disposals this year. On July 6, Strategy sold 3,588 Bitcoin for approximately $216 million. In early June, the company disclosed the sale of 32 Bitcoin—its first reported Bitcoin sale since a 2022 tax-loss harvesting transaction.

USD Reserve Grows to $4 Billion

During the same reporting period, Strategy raised $290.6 million through MSTR share sales. Of those proceeds, $250 million was allocated to increase the US dollar reserve, which stood at $4 billion as of Sunday—up from $2.55 billion disclosed just over a month earlier. An additional $28.9 million funded STRC repurchases, and $11.7 million was added to the company's cash balance.

Strategy founder and chairman Michael Saylor said in a Monday X post that the company repurchased $81.2 million worth of STRC stock and extended its US dollar runway by 57 days to 2.3 years.

STRC Trades Below Par Value

Strategy's perpetual preferred stock, STRC, traded at $89.40 during Monday's pre-market session—10.6% below its $100 target value—according to Yahoo Finance data. The company's MSTR stock also declined 0.9% in pre-market trading on Monday.

STRC serves as one of Strategy's financing mechanisms for Bitcoin purchases. Trading below its intended par value can constrain the company's ability to raise capital through STRC sales and may pressure it to further increase its dividend rate to attract buyers and support the stock's price. Strategy had already raised the annual STRC dividend rate to 12% in late June.

Prior Warnings and Capital Framework

On June 24, CryptoQuant CEO Ki Young Ju said Strategy should pause Bitcoin purchases and replenish its cash reserve after the company's dividend coverage fell to 14 months from seven years.

“They should pause Bitcoin purchases, rebuild cash reserves, and adopt a systematic framework for purchase timing,” Ju said in a June 24 X post.

In an 8-K filing dated June 29, Strategy unveiled a capital framework permitting Bitcoin sales to fund dividends, raised the annual dividend rate on its STRC preferred stock to 12%, and disclosed that its US dollar reserve had grown to $2.55 billion at that time. The framework gave explicit flexibility to sell BTC to meet obligations—a mechanism Strategy has now used three times in roughly two months.