Strategy Executive Chairman Michael Saylor signaled a possible bitcoin purchase with a Sunday post reading "Bitcoin Drive engaged." The post follows five weeks without a disclosed bitcoin purchase, during which Strategy's 843,775 BTC holdings have slipped roughly $10.4 billion below their acquisition cost. Saylor also confirmed the firm will hold its STRC dividend rate at 12% for August.
Strategy Executive Chairman Michael Saylor captioned his usual Sunday chart post "Bitcoin Drive engaged," a possible hint that the firm may disclose a bitcoin purchase Monday. The post follows five weeks without a disclosed bitcoin purchase, an atypical drought for the firm.
A five-week purchase drought
Strategy's last purchase disclosure came on June 22, when the firm said it had acquired 520 BTC for $34.9 million. It then sold 3,588 BTC for about $216 million between June 29 and July 5 to fund preferred-stock distributions and replenish its USD reserve. During the pause, the company has also sold common shares, lifted its dollar reserve to $3.75 billion and begun repurchasing STRC, moves that TD Cowen and Benchmark analysts have backed.
Holdings sit billions below cost
Strategy's latest SEC filing showed the firm held 843,775 BTC as of July 26, acquired for approximately $63.69 billion at an average price of $75,476 per bitcoin. Those holdings are now worth about $53.3 billion with bitcoin trading near $63,200, leaving the position roughly $10.4 billion below its acquisition cost.
STRC dividend holds at 12%
In a separate post Friday evening, Saylor said Strategy would maintain STRC's variable annualized dividend rate at 12% for record dates beginning in August. STRC pays cash dividends twice monthly based on a $100 stated amount, so at the 12% rate each semi-monthly dividend works out to $0.50 per share. Strategy evaluates the rate monthly to keep STRC trading near $100, and the board determines it each time, with every dividend still subject to declaration.
A July 27 press release said management intends to recommend the board maintain the 12% rate until STRC shows sustained, healthy trading near $100. STRC closed Friday about 10.5% below its $100 stated amount at $89.46, implying a yield of roughly 13.4% at the current dividend rate. Strategy's common stock closed at $93.28, down 4.6% on the session.
Last week's chart caption carried the same hint, yet the July 27 disclosure showed Strategy had not acquired any additional BTC.
Source: The Block
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