Post by Augustine Chiagozie (@pabloexchange)

💸 Strategy sold Bitcoin to reduce its financing costs

Strategy sold 1,638 BTC last week, about 0.19% of its holdings. The move sparked concerns that the company was abandoning its long-term Bitcoin strategy, but the numbers tell a different story.

The company says its cost of capital is 10.8%, while its STRC preferred stock is currently yielding around 13.4%. Instead of holding Bitcoin, Strategy used part of the proceeds to repurchase STRC below par, reducing future dividend obligations. The rest went toward preferred dividends and strengthening the cash reserve backing those securities.

At the same time, Strategy issued 3 million new common shares, raising $290.6 million, with $250 million added to its reserve.

The key point is that Strategy is optimizing its capital structure, not exiting Bitcoin. The company still holds 842,138 BTC, has paid preferred dividends for 18 consecutive months, and Michael Saylor says it remains a net buyer over the long term.

One number stands out: Strategy generated $122.4 million in quarterly software revenue, while annual preferred dividends and interest are approaching $1.76 billion. The balance sheet is becoming just as important as the Bitcoin holdings themselves.

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