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Strategy sells Bitcoin to bolster its USD reserve for preferred dividends
Strategy sold 1,638 bitcoin last week to raise $104.7 million aimed at supporting its preferred stock dividend obligations.
Michael Saylor's Strategy has been selling bitcoin to fund preferred stock dividends, according to Yahoo Finance. The outlet says the company sold about 1,638 bitcoin to raise $104.7 million to bolster its USD Reserve, a key input for dividend funding.
Yahoo Finance also notes Strategy previously sold bitcoin at roughly $64,000 per coin, taking about a 15% loss versus its stated $75,000 average cost. It connects the sales to maintaining reserve levels needed for shareholder payouts.
The company has also reframed its business model, moving away from describing itself as a pure bitcoin treasury company, Yahoo Finance reports. The outlet says Strategy has rebranded its approach as a Digital Credit Framework, prioritizing servicing debt and preferred stock obligations using bitcoin as collateral rather than purely accumulating the asset.
For its preferred stock, Yahoo Finance points to Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), saying it has rebounded about 35% from its June low to around $95 and that Saylor wants it at $100 before buying bitcoin again.
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