MicroStrategy Sells More Bitcoin to Fund Preferred Stock Buybacks

MicroStrategy has continued its pattern of selling Bitcoin to fund preferred stock buybacks. The company offloaded 1,690 BTC for $108.6 million between August 3 and August 9 at an average price of $64,262 per coin.

This sale brought in enough cash to repurchase 1,152,020 shares of STRC, the variable-rate perpetual preferred stock issued by MicroStrategy to finance its Bitcoin accumulation.

The company still holds 840,447 BTC, but every dollar from this latest sale went into buying back its own stock. This move is part of a larger strategy, known as the Digital Credit Capital Framework, which authorizes limited Bitcoin sales to fund preferred dividends and buybacks when issuing equity becomes less attractive.

The market has resisted the design of MicroStrategy's preferred stock, with STRC closing at $95.01 on Friday after sinking to lows of $71.25 within the past year.