Strategy Inc. (NASDAQ: MSTR) shares advanced 1.80% to $94.96 by 11:20 a.m. EDT, recovering from earlier session weakness after the company disclosed it sold 1,638 Bitcoin and redirected the proceeds toward STRC dividend payments and preferred share repurchases.

The move represents the latest adjustment in Strategy's evolving capital allocation policy, as management continues to balance its Bitcoin treasury holdings — the largest of any publicly traded company — against preferred stock obligations and growing cash reserves.

Bitcoin Sale Details and STRC Allocation

Strategy sold the Bitcoin between July 27 and August 2 at an average price of $63,957 per coin, generating $104.7 million in proceeds. The company allocated $52.4 million to dividend payments and $52.3 million to STRC repurchases.

Following the sale, Strategy's Bitcoin holdings declined to 842,138 coins. The total aggregate purchase cost for its Bitcoin treasury remained at approximately $63.5 billion.

The disposal ranks as Strategy's second-largest reported Bitcoin sale this year, following a larger transaction on July 6. The company had previously sold 3,588 Bitcoin for approximately $216 million and reported a separate 32-coin disposal in June. These transactions marked a departure from the company's longstanding one-way Bitcoin accumulation approach that began in August 2020 and helped establish corporate Bitcoin treasury holdings as a recognized balance-sheet strategy.

On June 29, Strategy adopted a broader capital framework permitting Bitcoin sales to fund dividends, debt costs, reserves, and approved repurchases. The company also raised STRC's annual dividend rate to 12% while the preferred security traded below its stated $100 par value. Management subsequently revised that policy to incorporate additional market, yield, volatility, and liquidity factors into future dividend decisions.

MSTR Share Sales Expand Dollar Reserve

During the same reporting period, Strategy sold 3.01 million MSTR shares, raising approximately $290.6 million in gross proceeds. The company directed $250 million into its U.S. dollar reserve, bringing the total available reserve to $4 billion by Sunday.

An additional $28.9 million was used for STRC repurchases, while the remaining $11.7 million was added to the company's general cash balance.

Executive Chairman Michael Saylor reported that STRC repurchases totaled $81.2 million across the full weekly reporting period. He noted that the enlarged reserve extended Strategy's dollar funding runway by 57 days to approximately 2.3 years.

STRC plays a central role in Strategy's financing model, as the company relies on preferred securities to support future Bitcoin acquisition activities. However, a persistent market discount to the security's stated value could dampen demand and reduce proceeds from future STRC issuances. In response, Strategy has prioritized repurchasing STRC at discounted levels while maintaining broader cash coverage for dividends, interest payments, debt service, and other corporate obligations.