Strategy Liquidates $105M in Bitcoin at a Loss to Support STRC Preferred Stock and Fund Dividends

Corporate treasury firm Strategy has sold 1,638 Bitcoin for $104.7 million at a loss to fund preferred share repurchases and dividend obligations, marking a strategic pivot in its digital balance sheet strategy. According to an 8-K filing with the U.S. Securities and Exchange Commission, the company also sold $291 million in common equity (MSTR) to stabilize its capital structure.

The tokens were liquidated at an average price of $63,957 per Bitcoin, roughly $11,462 below Strategy’s overall purchase cost basis of $75,419 per coin. The sale reduced the company’s total crypto treasury from 843,775 tokens to 842,138 tokens. The move represents the longest pause in Strategy’s Bitcoin accumulation strategy since June 22.

Capital raised from the cryptocurrency sale and equity issuance was directed entirely toward supporting the firm’s capital obligations. Strategy allocated $52.4 million toward preferred stock dividend payments and $52.3 million to execute an $81 million repurchase of its STRC preferred shares. STRC has consistently traded below its $100 par value since mid-May, putting pressure on the company’s broader corporate valuation. The transaction was conducted under an active $1 billion share buyback program, leaving Strategy with $4 billion in cash reserves, which management projects provides 2.3 years of operational runway.

The selling activity marks a departure from executive messaging surrounding long-term asset retention. Executive Chairman Michael Saylor clarified his stance on public channels, stating, “When I say ‘Never Sell Your Bitcoin,’ I speak as one saver to another. I have never sold mine.” The statement reflects a clear distinction between personal holdings and corporate treasury operations following earlier public statements urging market participants to hold Bitcoin indefinitely.

Despite the multi-million dollar corporate liquidation and a concurrent $100 million infrastructure breach affecting Coldcard hardware wallet users, spot Bitcoin prices absorbed the market supply, remaining flat at $63,800. Institutional net buying through spot exchange-traded funds helped counter the market pressure, with U.S. Bitcoin ETFs recording $170 million in net daily inflows while spot Ethereum ETFs saw $12 million in net outflows.

Domestic retail spot demand remains depressed. The Coinbase BTC Premium Index extended its negative trading streak to 78 consecutive days, establishing a record duration that points to a prolonged absence of aggressive buying pressure from U.S. retail investors compared to global spot markets.

In adjacent institutional and protocol developments:

• Solana Governance Vote: A proposal entered voting to double annual disinflation rates to 30%, which would reduce token issuance emissions by $1.36 billion over six years while increasing daily burn rates from 650 SOL ($47,000) to 9,000 SOL ($646,000).
• BlackRock Onchain Expansion: Asset management firm BlackRock launched tokenized money market funds on the Solana and Ethereum blockchains via transfer agent Securitize, backing tokenized shares directly with cash and short-term U.S. Treasurys.
• BitMine Treasury Growth: Tom Lee’s BitMine acquired an additional 10,399 ETH, expanding its treasury to nearly 5.8 million ETH—accounting for roughly 4.8% of total circulating supply—and repurchased 4.5 million shares of its common stock.