business
Strategy Sells $216 Million of Bitcoin for STRC Dividends as Shares Fall 3.4 Percent
Strategy announced the sale of $216 million in bitcoin on July 6 to support dividends on its STRC preferred shares. In early trading, STRC changed hands at $87.79 while MSTR shares fell 3.4 percent to $97.34. Cantor Fitzgerald analysts said restoring STRC to par remains the top priority.
CoinDeskAudio version
Tap play to generate a narrated version.
Developing·Limited corroboration so far. This page will refresh as more sources emerge.
Strategy sold $216 million of bitcoin on July 6, directing the proceeds to fund dividends on its STRC preferred shares. Bitcoin traded near $61,800 in early Monday trading. Cantor Fitzgerald analysts said restoring STRC to its $100 par value is management’s top priority after meeting with Executive Chairman Michael Saylor.
The bank stated that returning the preferred shares to par is essential to restarting Strategy’s bitcoin acquisition program. The analysts noted that Strategy has already raised dividend coverage from roughly 10 months to 18 months. They expect repeated steps to increase cash reserves, with buybacks possible if needed, and viewed cash holdings as the main support mechanism for STRC.
In early trading, STRC changed hands at $87.79 and MSTR shares fell 3.4 percent to $97.34. Cantor Fitzgerald said further equity issuance in MSTR should become available once STRC stabilizes, allowing additional bitcoin purchases. The bank dismissed concerns about upcoming convertible debt maturities, stating that Strategy can either restart its STRC-driven capital engine or refinance.
JPMorgan said last week that the selective bitcoin sales policy creates avoidable two-way risk for the company and the market.
