Key Takeaways
- Strategy sold 1,690 BTC for $108.6M and used the proceeds to repurchase STRC.
- Strategy raised $653.1M in MSTR sales as its USD reserve reached $4.65B.
- Strategy still holds 840,447 BTC as investors watch whether more sales follow.
The company disclosed Monday that it sold the bitcoin between Aug. 3 and Aug. 9 at an average price of $64,262 per coin. After the transaction, Strategy held 840,447 BTC acquired for an aggregate $63.36 billion, or an average of $75,385 per bitcoin.
Strategy Turns Bitcoin Into STRC Buybacks
The sale marks a notable move for a company best known for aggressively accumulating bitcoin. Strategy said the entire net proceeds from the sale went toward repurchasing STRC, its variable-rate Series A perpetual Stretch preferred stock.
Strategy repurchased 1,152,020 STRC shares for $108.6 million during the same Aug. 3-Aug. 9 period. The company still has $785.2 million available under its broader preferred-stock repurchase program, which was announced June 29.
Importantly, Strategy’s $75,385 average bitcoin purchase price applies to its aggregate holdings. The filing does not disclose the specific cost basis of the 1,690 bitcoin sold, so that figure alone cannot establish Strategy’s realized gain or loss on the transaction.
Saylor said Strategy’s maneuver also “tightened STRC’s BTC Credit by 10 bps.” A basis point is one-hundredth of a percentage point, meaning 10 basis points equals 0.10 percentage point.
Strategy Raises $653M and Builds Its Cash Buffer
At the same time, Strategy raised $653.1 million in net proceeds by selling 6,585,682 MSTR common shares through its at-the-market offering program. Of that amount, $650 million was directed into the company’s U.S. dollar reserve, while $3.1 million was added to its cash balance.
That pushed Strategy’s U.S. dollar reserve to $4.65 billion as of Aug. 9. The company says the reserve exists to support preferred-stock dividend payments and interest on outstanding debt.
“Strategy increased its USD Reserve by $650M and repurchased $109M of STRC,” Saylor said. He added that the moves increased the company’s “USD Duration” by 143 days to 2.7 years.
In simple terms, Strategy is building a larger cash cushion while simultaneously reducing some outstanding preferred shares. Rather than relying exclusively on its bitcoin position, the company now has billions of dollars set aside to help meet financial obligations tied to its increasingly complex capital structure.
Saylor Puts Bitcoin Risk Into the Equation
Saylor stressed that Strategy calculates STRC’s “BTC Credit” using an internal credit model assuming 10% annual bitcoin appreciation, 40% bitcoin volatility and a bitcoin price of $64,915. The filing itself does not provide enough detail to independently reproduce that proprietary calculation.
The transaction therefore represents more than a bitcoin sale. Strategy converted a small portion of its 840,447 BTC reserve into capital for STRC repurchases while separately issuing common stock to substantially increase its dollar reserves.
Investors will now be watching whether the 1,690 BTC sale was a limited balance-sheet adjustment or signals greater willingness by Strategy to use its enormous bitcoin reserve as an active financing tool alongside stock issuance, preferred securities and cash.
