Strategy sold $105 million worth of Bitcoin this week, bringing its dollar reserve to $4 billion. The company split the proceeds: half went to fund preferred dividends, and the other half — $81 million — went into a buyback of its own STRC tokens. It's the second such buyback in as many weeks.
The $105 million sale
The sale happened sometime this week, though the exact date wasn't disclosed. Strategy's dollar reserve now sits at $4 billion, a figure that includes cash and cash equivalents. The company has been known to rotate between Bitcoin and dollars depending on market conditions, but this is the first time in months it's sold a chunk this size.
Dividends and buybacks
Half the sale proceeds — roughly $52.5 million — went to pay preferred dividends. The other half funded an $81 million buyback of STRC, the company's own token. That's the second STRC buyback in two weeks. The first one, announced late last month, was smaller. The company didn't say whether this signals a new regular cadence or just opportunistic repurchasing.
With $4 billion in dollars and a Bitcoin stack that still dwarfs most corporate treasuries, Strategy is sitting on a lot of dry powder. The STRC buybacks suggest management sees the token as undervalued relative to the company's assets. But selling Bitcoin to fund dividends and buybacks is a shift from the pure accumulation play the company was known for in earlier years.
The timing is interesting. Bitcoin prices have been choppy this summer, and the company's dollar reserve is now at its highest level in over a year. Whether Strategy plans to redeploy that cash into more Bitcoin — or keep it for dividends and buybacks — is the open question.
Next steps
Strategy has now executed two STRC buybacks in two weeks, with no word yet on whether more are coming. The company's next earnings call is expected in early September, which could shed light on its capital allocation plans. Until then, the market is left watching the reserve and the buyback pace.
