Strategy sells 3,588 Bitcoin for $216M to fund dividends, keeps $2.55B reserve intact
Strategy sold 3,588 Bitcoin for about $216 million to help pay preferred stock dividends and rebuild cash reserves, cutting holdings to 843,775 BTC. The sales happened in two tranches at average prices of about $59,256 and $60,773. This followed a June disclosure that Strategy could sell Bitcoin under its new capital framework, which also raised the annual dividend on STRC preferred stock to 12% and showed a $2.55 billion dollar reserve that remained unchanged in the latest filing. STRC traded below its $100 par value, which can limit Strategy’s ability to raise funds through preferred stock and may pressure dividend rates higher. Bernstein said Strategy is unlikely to face forced Bitcoin sales, citing ample liquidity, about 17 months of coverage for dividends and interest, and debt equal to only 13% of Bitcoin collateral value. It kept a $150,000 year-end Bitcoin target.
