Forced Maneuver Strategy: Strategy sells Bitcoin again to save preferred shares STRC
Strategy (formerly MicroStrategy) has again resorted to selling part of its bitcoin reserve. This week, the corporation sold 1,690 BTC for $108.6 million, directing all proceeds to buy back its own preferred shares STRC. This move is not a whim but a forced measure to support a financial instrument that the market stubbornly refuses to value at par.
After this transaction, Strategy retains 840,447 BTC — the largest corporate stockpile of the first cryptocurrency in the world. However, it is important to understand the context: the company is selling coins at a price significantly below its average cost, recording a loss on the balance sheet to save STRC quotes.
Deal details: the price of the matter
Sales were carried out from August 3 to 9 at an average price of $64,262 per coin. The information was disclosed in an 8-K report filed with the U.S. Securities and Exchange Commission (SEC). All proceeds — $108.6 million — were used to repurchase 1,152,020 preferred shares of STRC.
Recall that STRC is a perpetual preferred share with a floating rate, issued to finance bitcoin investments. Its dividend is revised monthly and currently stands at 12% per annum — an attempt to keep the price near the $100 par value. However, the market dictates its own terms: on Friday, the paper closed at $95.01, and over the year it fell to $71.25. Even in Monday's premarket, the share only slightly rose to $95.55.
Systematic approach: reserves and ATM program
In parallel, Strategy sold 6,585,682 common shares of MSTR through an at-the-market (ATM) program, raising $653.1 million. Of this, $650 million was directed to the company's dollar reserve, which now stands at $4.65 billion. This is part of the new Digital Credit Capital Framework strategy approved at the end of June.
In essence, we are witnessing a transition from aggressive bitcoin accumulation to a liquidity management mode. The company has deliberately paused BTC purchases and is building up a fiat cushion to guarantee payments on all preferred securities for years ahead. CEO Michael Saylor emphasizes that this is not a rejection of bitcoin but a credit operation to strengthen the balance sheet.
My take on the situation
Attempts to revive STRC have partially worked: the paper has recovered about 33% from its lows. But $109 million in buybacks and a 12% dividend have not returned the price to par. Investors should realize: the bitcoin proxy now operates as an actively managed treasury, where the interests of preferred shareholders are placed above simple BTC accumulation. This is a fundamental shift in the company's philosophy, and the market will need time to reassess the risks. The question is whether the current pace of sales will be enough to maintain a fragile balance, or whether we will see a new wave of pressure on quotes.