- Strategy sold 1,638 bitcoin for approximately $105 million at an average price of $63,957 per coin, as part of its new capital management strategy.
- Proceeds from the sale will fund preferred dividends and share repurchases, with $52.4 million allocated for dividends and $52.3 million for repurchasing shares.
- Strategy repurchased 912,143 STRC shares for $81.2 million and increased its USD reserve by $250 million, bringing the total to $4 billion.
- In late June, Strategy introduced its Digital Credit Capital Framework, allowing for up to $1.25 billion in bitcoin sales to manage liquidity and obligations.
- This framework represents a significant shift from Strategy's previous approach of primarily holding bitcoin as a treasury reserve asset.
Strategy Inc. sold 1,638 Bitcoin for $105 million as part of its new capital management strategy, which allows for the sale of Bitcoin to meet liquidity needs. This sale reduces its holdings to 842,138 BTC, valued at approximately $53 billion.
The proceeds will fund preferred stock dividends and share repurchases, with $52.4 million allocated for dividends and $52.3 million for repurchasing shares of its Variable Rate Series A Perpetual Stretch Preferred Stock. The company also repurchased 912,143 shares of its high-yielding preferred stock for $81.2 million.
This move is part of a broader strategy initiated in late June, which marked a significant shift from its historical posture of accumulating Bitcoin. The company had previously designated Bitcoin as its primary treasury reserve asset but faced mounting obligations tied to its preferred stock and convertible debt, prompting a need for active capital management.7
CEO Phong Le described the new approach as one of two-way flexibility, allowing the company to manage its capital effectively. The board has authorized Bitcoin sales of up to $1.25 billion under this framework, which aims to stabilize its balance sheet and manage high-yielding preferred stock obligations.
Despite the sale, Strategy's stock fell about 1% in premarket trading, reflecting ongoing pressures across its capital structure, including a significant decline in the value of its preferred shares and common stock.
The company is currently operating in capital preservation mode, focusing on liquidity rather than aggressive Bitcoin acquisition, which may disappoint some investors.
“The sale was executed at an average price of $63,957 per coin — below the $75,419 average acquisition cost — and helped finance an $81.2 million STRC repurchase at an 11% discount to par. Separately, an ATM common-stock sale raised $290.6 million, lifting the USD reserve to $4 billion and leaving bitcoin holdings at 842,138 coins.”
qz.com
