Strategy MSTR Sells Bitcoin and Stock in Same Week, Generates $395 Million

Strategy MSTR, an investment vehicle, has sold a significant portion of its Bitcoin holdings between July 27 and August 2. The strategy offloaded 1,638 Bitcoin at an average price of $63,957, generating net proceeds of $104.7 million after fees. This sale represents about 15% below the cost basis, which is the average purchase price across its holdings.

The sale was part of a larger effort to manage Strategy's portfolio and generate returns for investors. The proceeds were used to fund dividends on preferred stock and repurchase shares under the Digital Credit Securities Repurchase Program. Additionally, $52.4 million went into funding dividends on preferred stock and $52.3 million funded STRC share buybacks.

In a separate transaction, Strategy sold 3,011,361 Class A common shares through an at-the-market program for $290.6 million net of fees. Of this amount, $250 million was deposited into the USD Reserve to support preferred dividends and debt interest, while $28.9 million funded further STRC buybacks and $11.7 million went towards cash.

Strategy's holdings now stand at 842,138 Bitcoin acquired for a total of $63.51 billion. The USD Reserve holds $4.0 billion as of August 2. Management has maintained the STRC dividend rate at 12.00% per annum and reiterated that they will not recommend a change until the stock trades at or near its stated value of $100.