Strategy offloads 1,638 Bitcoin as dividend costs rise

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Strategy sold 1,638 BTC

Highlights

Strategy temporarily reduced its Bitcoin holdings.
The sale supported capital management.
Bitcoin remains central to Strategy's strategy.

According to BeInCrypto, Strategy's Bitcoin holdings grew by just 37 BTC between May 26 and July 26 before falling sharply over the following week. Company disclosures show the treasury declined from 843,775 BTC on July 26 to 842,138 BTC as of Aug. 2, leaving holdings below their level in late May despite months of minimal purchasing activity.

Bitcoin sales support financing strategy

The latest sale was tied to Strategy's broader capital allocation plan rather than a change in its long-term view of Bitcoin. The company sold 1,638 BTC during the week, generating approximately $104.7 million in proceeds.

The transaction helped fund obligations related to the company's preferred stock program, whose quarterly dividend payments have expanded rapidly as Strategy increased its use of preferred equity financing. Quarterly preferred dividend expenses climbed to $400.7 million in the second quarter, up from $49.1 million a year earlier, while annual dividend and interest obligations have risen to roughly $1.76 billion.

Strategy disclosed that it sold Bitcoin at an average price of $63,957 per coin, below its average acquisition cost of $75,419, resulting in a realized accounting loss. However, part of the proceeds was used to repurchase 912,143 STRC preferred shares at an average price of $89.02, below their $100 par value, reducing future dividend obligations.

The company also sold 3.01 million common shares, raising $290.6 million, while authorizing a $1 billion common-share repurchase program that has not yet been utilized.

Bitcoin strategy remains intact despite portfolio adjustment

Although recent filings show a decline in Bitcoin reserves, management maintains that the company has not abandoned its long-term accumulation strategy.

Rather than signaling a strategic retreat from Bitcoin, the latest transactions reflect a broader shift toward active balance-sheet management as Strategy balances cryptocurrency holdings with financing costs and shareholder returns.

The company also announced that it increased its corporate liquidity reserve by $250 million, bringing total available reserves to $4 billion, providing greater financial flexibility while maintaining the world's largest corporate Bitcoin treasury.

Capital management takes center stage

The latest transactions highlight how Strategy's financial model is evolving as its Bitcoin treasury matures. With 842,138 BTC still on its balance sheet, the company remains by far the largest corporate Bitcoin holder, but rising financing costs are increasingly influencing capital allocation decisions. Investors are now likely to focus not only on future Bitcoin purchases but also on how effectively Strategy balances debt, preferred equity, liquidity, and shareholder returns while continuing to build its digital asset strategy.

Earlier, we reported that CryptoQuant urges Strategy to pause Bitcoin buying.

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