Strategy Taps Bitcoin Reserves to Service Preferred Stock as STRC Trades Below Par

In the lastest Bitcoin news today, Strategy (Nasdaq: MSTR), Michael Saylor’s bitcoin treasury company, disclosed the sale of 1,638 BTC for approximately $105 million in an 8-K filing with the SEC.

Proceeds are expected to fund dividend payments on Strategy’s preferred stock classes – including STRC, STRK, STRD, STRF, and STRE – and to pay for repurchases of STRC preferred shares.

This is not simply a Bitcoin sale. It is a capital structure management exercise, with Strategy running a parallel set of levers – BTC monetization and reserve allocation – to service a preferred-stock stack that carries rising cash obligations.

DISCOVER: Best Meme Coins to Buy in 2026

Bitcoin News Today: BTC Sale Mechanics, Price, and the Six-Week Accumulation Pause

Strategy liquidated the 1,638 BTC at an average of roughly $64,000 per coin, a price that sits materially below the firm’s all-in average acquisition cost of $75,419. Despite offloading a portion of its reserves and now sitting on a $10.9 billion paper loss, Strategy remains one of the largest corporate holders of Bitcoin globally, and the $105 million sale represents a small fraction of its total portfolio.

Strategy increased its USD Reserve by $250M and repurchased $81M of $STRC. This increased USD Duration by 57 days to 2.3 years and tightened STRC’s BTC Credit by 5 bps. As of 8/2/26, we hold ₿842,138 in our BTC Reserve and $4.0B in our USD Reserve. $MSTR https://t.co/t7bGZJ8Q3o

— Michael Saylor (@saylor) August 3, 2026

The sale marks the sixth consecutive week without a new Bitcoin purchase, a notable departure from the accumulation posture that defined Strategy’s public identity for years.

The pattern has been escalating: Strategy sold just 32 BTC in May 2026, then 3,588 BTC in early July for approximately $216 million, and now this latest tranche. Proceeds are directed toward preferred-dividend payments and STRC repurchases.

EXPLORE: Best Meme Coins to Buy for August

STRC Preferred Stock: Buyback Logic and the 12% Dividend

Strategy’s repurchases of STRC preferred shares form a key part of its capital management response. STRC – the company’s Variable Rate Series A Perpetual Preferred Stock – carries a 12% annual dividend rate and a stated value of $100 per share, but has been trading below par.

The stock closed at $89.46 on July 31, putting it roughly 10 to 11% below its $100 par value even at the highest dividend rate in its history.

STRC launched in July 2025 at a 9% rate and has climbed through seven consecutive monthly increases, reaching 12% for record dates beginning July 1, 2026. The increases follow a ratchet mechanism: the dividend rises 0.5% whenever STRC trades below $95, and once triggered, an increase cannot be reversed even if the price recovers.

Strategy resets the rate monthly to push STRC’s price back toward its $100 par value, a mechanism the company depends on to issue new STRC shares and raise fresh capital.

The persistent discount has forced Strategy to pause new STRC issuance through its at-the-market program, limiting the company’s ability to keep adding to its bitcoin holdings using that specific funding channel.

Competition has added pressure, with rival Strive’s SATA preferred security offering a roughly 13% yield with daily dividend payments and no underlying debt, drawing investor demand away from STRC.

next

The post Strategy Taps Bitcoin Reserves to Service Preferred Stock as STRC Trades Below Par appeared first on Coinspeaker.