Strategy sells Bitcoin again this week. The company sold 1,638 BTC from July 27 through Sunday.
This is its second-largest BTC sale of the year. The sale comes after the 3,588 BTC disposal on July 6.
Why Strategy sells Bitcoin now
Strategy sold at an average price of $63,957. The total proceeds reached $104.7 million. Of this, $52.4 million funded STRC dividend payments. Another $52.3 million repurchased STRC stock.
The company now holds 842,138 BTC. These were bought at an aggregate cost of $63.5 billion.
Strategy bolsters USD reserve to $4B
Strategy also raised $290.6 million through MSTR share sales. $250 million increased the USD reserve. The reserve now stands at $4 billion. Another $28.9 million funded STRC repurchases.
Saylor said the company repurchased $81.2 million worth of STRC. The USD runway extended by 57 days. It now covers 2.3 years.
STRC and MSTR stock performance
STRC traded at $89.40 in pre-market trading. This is 10.6% below its $100 target. MSTR stock declined 0.9% in pre-market.
STRC is one of Strategy’s financing mechanisms. Trading below par can limit fundraising. This may pressure the company to increase its dividend rate.
CryptoQuant CEO Ki Young Ju warned on June 24. He said Strategy should pause purchases and rebuild cash reserves.
“Adopt a systematic framework for purchase timing,” Ju said.
Strategy unveiled a capital framework on June 29. It allows Bitcoin sales to fund dividends. The annual dividend rate on STRC rose to 12%. The USD reserve grew to $2.55 billion then.