Strategy executed its 5,226 BTC sale for $321 million across three separate transactions, reducing total holdings to 842,137 BTC from 847,363 BTC. The company received $321 million after fees, equal to an average sale price of $61,200 per Bitcoin. Strategy used $217 million of the proceeds to fund preferred stock dividends and directed the remaining $104 million toward repurchases of its STRC preferred shares. The company simultaneously raised $290.6 million through the sale of 3.01 million MSTR common shares and repurchased $106 million of STRC preferred shares. Strategy's USD reserve has grown to $4 billion after a $250 million addition on Monday, providing approximately 2.3 years of coverage for dividend obligations on preferred securities. The company is now tracking bitcoin's 200-week moving average on its website, a level at approximately $63,770 that bitcoin is currently testing.
Strategy's perpetual preferred stock, Stretch (STRC), has risen more than 30% from its late-June low, currently trading around $94 after gaining another 1% on Wednesday. STRC bottomed in late June around $71 as bitcoin fell below $60,000, but the company's bitcoin sales and strengthened dividend coverage have supported the recovery. Strategy has maintained STRC's annualized dividend rate at 12% while simultaneously repurchasing $106 million of the preferred stock as it seeks to return the stock to its $100 stated value. The company noted in its second-quarter earnings call that following STRC's initial public offering, it took 70 trading days for the security to reach par after trading at $90 in July 2025. Applying the same timeframe from when STRC fell outside its targeted range in late May, Strategy is eyeing September 8 as a potential date for the preferred stock to return to its $100 par value.
Bitcoin has at least stopped falling, stabilizing above $60,000 for several weeks in a row, providing some relief to Strategy's bitcoin-heavy balance sheet. The company sold coins at prices below its $75,419 average cost basis to fund preferred dividends and STRC stock repurchases, with those obligations reaching $400.7 million in the second quarter alone. The planned Bitcoin sales serve three primary financial objectives for Strategy: increasing U.S. dollar reserves by up to $1.25 billion to bring total cash buffer to $58.5 billion or approximately 3 years of coverage, funding annual dividend payments linked to Stretch (STRC) and other preferred stocks with $1.76 billion from BTC sales, and allocating an extra $2 billion for common stock and digital credit security buybacks. To support this effort, Strategy has expanded its US dollar reserve to a record $3.75 billion, equivalent to roughly 2.1 years of dividend and interest coverage, while maintaining a minimum one-year coverage target.
A wallet reportedly belonging to Strategy moved 1,030 Bitcoin worth about $66.14 million on Wednesday, according to onchain analytics platform Lookonchain. The transfer occurred just days after Strategy disclosed its 5,226 BTC sale at an average price of $61,200 per Bitcoin. However, Strategy has not confirmed that this latest transfer represented a sale, as reported by crypto.news. The company's most recent SEC filing reported holdings of 842,137 BTC as of the latest update, with the ledger recording transactions reported by Strategy rather than every transfer attributed by external analytics firms. The company's public Bitcoin ledger still lists 842,137 BTC following the latest update, with the ledger recording transactions reported by Strategy rather than every transfer attributed by external analytics firms.
Markets are viewing Strategy's plan as a potential supply overhang that could significantly impact Bitcoin's liquidity dynamics. The sheer scale relative to daily spot volume means even a fraction of the $5 billion placed over a few weeks could widen spreads on major exchanges and push perpetual futures into contango as hedgers step in. However, Strategy shares rose approximately 2.9% to $97.65 during the latest U.S. session, while MARA shares were nearly unchanged at $11.75, showing no immediate broad selloff tied to the reported transfers. Strategy says it will disclose material Bitcoin monetization through its customary Form 8-K filings and its public dashboard, with its next update expected to show whether the 1,030 BTC movement changed the company's reported holdings. MARA investors will similarly need an SEC filing or company statement to determine whether its 6,000 BTC remains under company ownership, as the miner previously allocated 2,000 Bitcoin to Two Prime's institutional yield strategies.
