Strategy co-founder and Executive Chairman Michael Saylor hinted at a potential resumption of the firm’s treasury accumulation on Sunday, posting a chart on social media with the caption “Bitcoin Drive engaged.” The post suggests the corporate treasury pioneer may disclose a new Bitcoin acquisition following a rare five-week pause in purchases.
The company last reported purchasing Bitcoin on June 22, acquiring 520 BTC for $34.9 million. Since then, Strategy took step-by-step capital management measures, including selling 3,588 BTC for $216 million between June 29 and July 5 to fund preferred stock distributions and replenish cash reserves. As of July 26, Strategy held 843,775 BTC acquired for roughly $63.69 billion at an average cost of $75,476 per coin. With Bitcoin trading near $63,200, the firm’s total holdings carry an unrealized paper loss of approximately $10.4 billion.
Capital Preservation and USD Reserve Expansion
During the buying hiatus, Strategy focused heavily on balance sheet fortification. The firm expanded its US dollar cash reserve to $3.75 billion through common stock sales, establishing a liquidity buffer designed to cover more than two years of interest obligations and dividend payments on preferred shares.
Wall Street research firms, including Benchmark and TD Cowen, supported the pause in aggressive buying, viewing the accumulation of cash reserves and preferred stock repurchases as prudent defensive positioning during broader market consolidation.
Preferred Dividend Fixed at 12% to Support STRC Trading
Alongside the purchase teaser, Saylor confirmed that Strategy will maintain the variable annualized dividend rate for its STRC preferred stock at 12% for record dates starting in August. Under the current rate structure, STRC pays a semi-monthly cash distribution of $0.50 per share based on a $100 stated par value.
Strategy management intends to recommend keeping the 12% payout until STRC demonstrates sustained trading near its $100 par value. The preferred stock closed Friday, July 31, at $89.46, roughly 10.5% below par, yielding an effective annualized rate of approximately 13.4%. Chief Executive Officer Phong Le noted that the company plans to scale STRC repurchases dynamically, placing larger buy orders during deep discounts to support price stability while allowing secondary market demand to establish organic liquidity.
