Strategy Sells $108.6M in Bitcoin to Fund STRC Buybacks

Key Insights:

• Strategy sold $108.6M in Bitcoin and used all proceeds to repurchase STRC shares.
• Strategy raised $653.1M through MSTR sales and lifted its dollar reserve to $4.65B.
• MSTR stock recovered from about $97.40 while remaining below the $100.01 close.

Strategy sold 1,690 Bitcoin for $108.6 million between August 3 and August 9. The company sold the Bitcoin at an average price of $64,262 per coin. It used the entire proceeds to repurchase 1,152,020 STRC shares under its existing buyback program. The transaction came as Strategy separately raised $653.1 million through MSTR stock sales.

The two transactions served different purposes within Strategy’s capital structure. The Bitcoin sale provided funds for the STRC buyback, while the MSTR stock sale supported the company’s cash position.

Strategy allocated $650 million from the stock sale to its U.S. dollar reserve. That allocation increased the reserve from $4 billion to $4.65 billion within one week.

However, past price patterns and technical indicators do not guarantee future market performance. Investors should independently assess the risks associated with cryptocurrency investments before taking action.

Strategy Uses Bitcoin Sale to Repurchase STRC Stock

The latest Bitcoin transaction brings Strategy’s recent STRC repurchase activity into focus. The company has a $1 billion Digital Credit Securities Repurchase Program. Strategy introduced the program through its Digital Credit Capital Framework on June 29.

Following the latest purchase, Strategy still has $785.2 million available under the repurchase program. The company used the full $108.6 million from its latest Bitcoin sale for the buyback. That approach kept the proceeds separate from the funds raised through its MSTR stock issuance.

The STRC stock price also moved closer to the level identified by Strategy’s management. STRC traded at $95.55 in premarket trading, according to the information provided. Chief Executive Phong Le previously said the company wanted STRC to trade between $99 and $100 over time.

The latest buyback also affected Strategy’s internal capital measures. Michael Saylor said the transaction reduced the company’s “BTC Credit” by 10 basis points. He also said “USD Duration” increased by 143 days to 2.7 years.

MSTR Stock Sale Builds Strategy’s Dollar Reserve

While Bitcoin sale proceeds went toward STRC shares, Strategy used its MSTR stock issuance to strengthen its dollar reserve. The company sold 6,585,682 MSTR shares through its at-the-market program. Those sales generated $653.1 million in proceeds.

Strategy allocated $650 million to the U.S. dollar reserve and $3.1 million to cash accounts. The reserve now stands at $4.65 billion. Strategy has said the reserve is dedicated to preferred dividends and interest obligations.

The company therefore increased its cash reserve without using the proceeds from its latest Bitcoin sale. Strategy also retains $1 billion under a separate MSTR common-stock repurchase program. These transactions leave the company with multiple capital commitments operating alongside its Bitcoin holdings.

MSTR Stock Price Recovers From Session Low

The capital activity came as the MSTR stock price moved through a volatile August 10 session. Strategy’s Class A shares traded at $99.57 in the session shown. That was $0.44, or 0.44%, below the previous close of $100.01.

The shares initially declined from around $100 before reaching approximately $97.40. They later recovered toward the $99.60 area. Trading activity appeared concentrated during the early session, with volume showing buying and selling activity during the decline and rebound.

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