Strategy Sells Bitcoin Below Cost as it Shifts Focus to Preferred-Stock Defence

Strategy (NASDAQ:MSTR) has made significant changes to its financial strategy, selling Bitcoin below cost and issuing common shares to fund preferred-stock defence. In a move aimed at reducing future preferred dividend requirements, the company sold 1,638 Bitcoin for $104.7 million, averaging $63,957 per coin. This sale was 15.2% below Strategy's company-wide average purchase price.

The company also issued 3.01 million common shares and repurchased 912,143 Stretch preferred shares (NASDAQ:STRC) for $81.2 million. The STRC repurchase produced better near-term economics, with an 11.0% discount to the stated value of $100.

Strategy's dollar reserve reached $4.0 billion after the latest contribution, providing a significant increase in liquidity and reducing immediate risk of funding issues. However, the company still maintains $22.69 billion in available common-stock ATM issuance capacity, which could lead to dilution for common shareholders if not used judiciously.

Strategy's Chief Executive Phong Le emphasized the importance of holding liquid U.S. dollars, stating that 'the biggest lesson so far from 2026 is the importance of holding liquid U.S. dollars.'