Saylor pledges indefinite Bitcoin buying as $STRC funds $63.5B treasury

Strategy's Michael Saylor pledged indefinite Bitcoin purchases funded by $STRC preferred stock issuance, extending a $63.5 billion treasury position built since 2020.

"Our shared conviction in Bitcoin remains unchanged," Saylor, executive chairman of Strategy, said on X on Aug. 3, as the company disclosed its third Bitcoin sale of the year.

Strategy holds 842,138 BTC purchased at an average of $75,419 per coin, a total cost basis of $63.51 billion. The company sold 1,638 BTC between July 27 and Aug. 2 at an average price of $63,957, raising $104.73 million. Of that, $52.4 million funded preferred stock dividends and $52.3 million repurchased STRC shares at about $89 each against a $100 stated amount.

The indefinite buying commitment comes as Strategy's preferred stock machine becomes its primary funding engine. STRC, the Variable Rate Series A Perpetual Stretch Preferred Stock, carries a 12 percent annual dividend on roughly $10.46 billion of notional value — an annual bill of about $1.26 billion paid in cash twice a month. With the MSTR NAV premium compressed toward 1x, preferred equity issuance replaces stock sales as the mechanism for Bitcoin accumulation.

STRC as the Funding Engine

STRC launched in July 2025 paying 9 percent annually. The rate was raised to 11.50 percent at the end of June and then to 12 percent on June 29. Strategy's board approved a formal policy in June — the Digital Credit Capital Framework — governing when the company sells coins, including a BTC Monetization Program and a revised STRC dividend rate policy.

Preferred stock sales netted Strategy $5.46 billion in the second quarter, which the company converted into 72,408 BTC. In July, the preferred stock started working in reverse: coins became dividend payments. The company sold 3,588 BTC for $216 million in early July — its largest single sale ever — and another 1,638 BTC in late July.

Saylor's Aug. 3 post drew a sharp line between his personal holdings and Strategy's corporate balance sheet. "When I say 'Never Sell Your Bitcoin,' I speak as one saver to another," he wrote. "I have never sold mine. Not one satoshi. Strategy is a public company, not my wallet."

Market Implications

Bitcoin traded at $64,259 on Aug. 5, roughly 49 percent below its all-time high of $126,080 set on Oct. 6, 2025. Analysts project a potential bottom near $58,000–$62,000 if August's historically weak seasonal pattern holds. The indefinite buying pledge from the largest corporate Bitcoin holder could provide a floor for prices, but the mechanics matter: Strategy's cash reserve of $4.0 billion covers roughly 2.1 years of preferred dividend obligations without additional sales.

JPMorgan analysts have cautioned that Strategy should build cash reserves further to "restore confidence and reduce investor concerns." The company's Q2 net loss of $8.22 billion — driven by an $8.32 billion unrealized markdown on Bitcoin holdings under fair-value accounting rules (ASU 2023-08) — has put pressure on the stock, which is down roughly 42 percent for the year.

The question now is whether $STRC issuance can sustain the buying machine. STRC has recovered toward $92, a seven-week high, after Strategy repurchased 912,143 shares for $81.2 million. TD Cowen described management as aiming at "restoring STRC to near-par trading levels." With $893.8 million remaining under the repurchase program, the company has room to support the instrument while continuing to accumulate Bitcoin.

This article is for informational purposes only and does not constitute investment advice.