Strategy sold 1,638 BTC for about $105 million to fund preferred stock dividends and buy back STRC shares, as its variable-rate preferred stock trades roughly 10% below par.

In an SEC 8-K filing, Strategy (Nasdaq: MSTR), the bitcoin treasury firm led by Michael Saylor, said the proceeds will be used to cover dividend payments across its preferred stock lineup — including STRC, STRK, STRD, STRF, and STRE — and to finance STRC repurchases.

The move reflects a broader capital management strategy rather than a simple bitcoin sale. Strategy is tapping its BTC reserves to generate liquidity while preserving enough holdings to support a growing stack of preferred equity obligations.

BTC Sale Details and Accumulation Pause

The company sold the bitcoin at an average price of roughly $64,000 per coin, well below its average acquisition cost of $75,419. Despite sitting on an estimated $10.9 billion unrealized loss, Strategy remains one of the largest corporate holders of bitcoin, with the $105 million sale representing only a small portion of its total reserves.

The sale also marks the sixth straight week without a bitcoin purchase, signaling a pause in the aggressive accumulation strategy that has long defined the firm.

Selling has picked up in recent months. Strategy offloaded just 32 BTC in May 2026, followed by 3,588 BTC in early July for around $216 million, and now this latest tranche — with proceeds consistently directed toward dividends and buybacks.

STRC Under Pressure: Discount and Rising Yield

STRC buybacks are central to Strategy’s response. The Variable Rate Series A Perpetual Preferred Stock carries a 12% annual dividend and a $100 par value but continues to trade below that level.

On July 31, STRC closed at $89.46, leaving it about 10–11% under par despite offering its highest yield on record.

Launched in July 2025 with a 9% dividend, STRC has seen seven consecutive monthly increases, reaching 12% for record dates starting July 1, 2026. The structure includes a ratchet mechanism: if the stock trades below $95, the dividend rises by 0.5%, and once increased, it cannot be reduced.

Strategy adjusts the rate monthly to push the share price closer to $100, a key requirement for issuing new shares and raising capital.

However, the persistent discount has forced the company to pause new STRC issuance under its at-the-market program, limiting its ability to fund further bitcoin purchases through that channel.

Competition is adding to the pressure. Rival firm Strive has launched its SATA preferred security, offering around a 13% yield with daily payouts and no underlying debt, drawing investor demand away from STRC.