started · updated
Strategy shifts to Bitcoin sales to fund preferred stock repurchases
Strategy, led by Michael Saylor, has shifted its operational model from pure Bitcoin accumulation to a ‘Digital Credit Framework.’ This new approach involves using Bitcoin as collateral to manage corporate obligations, including dividend payments for its STRC preferred stock and repurchasing shares.
Recent regulatory filings reveal that the company has engaged in several significant Bitcoin sales to bolster its liquidity. Between August 3 and August 9, Strategy sold 1,690 BTC for approximately $108.6 million at an average price of $64,262. This followed a previous sale of 1,638 BTC between July 27 and August 2. These sales occurred at prices below the company’s average acquisition cost of approximately $75,385 per Bitcoin, resulting in realized paper losses.
To support its capital structure, Strategy has also utilized equity markets, raising $653 million through the sale of MSTR common shares. A significant portion of these proceeds was directed toward increasing the company’s US dollar reserve, which reached $4.65 billion as of August 9. The company has indicated it will pause further Bitcoin purchases until its STRC preferred stock returns to its $100 par value.
Entities
Bitcoin · Michael Saylor · Nasdaq · Peter Schiff · SEC · Strategy · Strategy Inc. · U.S. Securities and Exchange Commission
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 4 SOURCES] The company aims to resume Bitcoin purchases once its STRC preferred stock reaches a par value of $100. www.criptovaluta.it · www.brasilemfolhas.com.br · www.foreignpolicyjournal.com
- [● 8 SOURCES] Strategy sold 1,638 BTC for $104.73 million between July 27 and August 2 at an average price of $63,957. crypto.news · news.bitcoin.com · coinpaper.com · bitcoinmagazine.com · www.brasilemfolhas.com.br · +2 more
- [● 4 SOURCES] Michael Saylor stated that a previous sale of 32 BTC was a market test to prove the company can monetize its treasury without triggering a market crash. cryptosnewss.com · blockonomi.com
- [DISPUTED] Strategy's US dollar reserve reached $4.65 billion as of August 9. www.criptovaluta.it · www.cointribune.com · coinpaper.com · en.bitcoinsistemi.com · criptotendencia.com
- [○ 1 SOURCE] During the same period as the Bitcoin sale, Strategy sold 3.01 million MSTR shares for $290.6 million. crypto.news
- [DISPUTED] Strategy holds 840,447 BTC with an average acquisition cost of approximately $75,385 per coin. crypto.news · coinpaper.com · en.bitcoinsistemi.com · en.coin-turk.com · coinedition.com
- [● 5 SOURCES] The proceeds from the 1,690 BTC sale were used to repurchase 1,152,020 shares of STRC preferred stock. coinpaper.com · www.moneytimes.com.br · bitcoinmagazine.com · en.coin-turk.com
- [● 7 SOURCES] Strategy sold 1,690 BTC for $108.6 million between August 3 and August 9 at an average price of $64,262. coinpaper.com · en.bitcoinsistemi.com · www.moneytimes.com.br · bitcoinmagazine.com · en.coin-turk.com · +1 more