Strategy Liquidates $105M Bitcoin, Reaches $4B USD Reserve
In brief
- Strategy sold 1,638 BTC at $63,957 average, reducing holdings to 842,138 coins
- Proceeds split: $52.4M preferred dividends, $52.3M share buyback
- USD reserve reached $4B milestone with $893.8M remaining under buyback authorization
- Bitcoin holdings down 0.6% from June peak of 847,363 BTC
Proceeds Split Evenly Between Dividends and Buyback
Strategy sold the coins at an average of $63,957, net of fees. The proceeds were divided nearly in half: $52.4 million funded dividends on its preferred stock, while $52.3 million went toward repurchasing STRC shares.
The repurchase came to $81.2 million for 912,143 STRC shares, with the remaining $28.9 million funded out of common stock sales. This marks Strategy's second buyback under a $1 billion program announced June 29, following a $25 million purchase the previous week. $893.8 million of authorization remains outstanding.
Dollar Reserve Milestone and Capital Framework
Strategy's USD reserve reached $4.0 billion as of August 2. The milestone reflects both the Bitcoin sale proceeds and $250 million from MSTR share sales, which the company directed into the reserve.
The company said the week's moves extended what it calls its USD duration by 57 days, to 2.3 years, a metric measuring how long the firm can fund operations and dividends from liquid reserves. Strategy holds annual dividend obligations of approximately $1.76 billion and maintains the STRC dividend rate at 12% per year.
Shift From Never-Sell Philosophy
Strategy broke with its long-held "never sell" stance at the end of May, introducing a capital framework that allows for up to $1.25 billion in Bitcoin disposals. Strategy has used $321 million of that capacity, including the $216 million worth of BTC sold in July.
The firm's Bitcoin holdings are now 5,225 BTC below the 847,363 peak reached in June, representing a 0.6% reduction. Strategy has not added Bitcoin since June.
