Strategy Inc Reports $290.6M in ATM Sales, Maintains 12% Dividend on Preferred Stock
The $36 billion bitcoin treasury company disclosed August capital markets activity including share sales, bitcoin transactions, and dividend declarations in its latest regulatory filing.
ATM Program Activity
Strategy Inc disclosed $290.6 million in proceeds from sales under its at-the-market offering program during the period ending July 31, according to an 8-K filing submitted August 3, 2026. The company distributed these proceeds across three purposes: $250.0 million to increase its USD Reserve, $28.9 million to fund repurchases of STRC Stock under its Digital Credit Securities Repurchase Program, and $11.7 million added to its cash balance (8-K filing, 2026-08-03).
The ATM update comes as Strategy operates under a $21.0 billion offering capacity announced March 23, 2026, though sales under this expanded program will only commence once existing offering capacity is substantially depleted (8-K filing, 2026-08-03).
Bitcoin Holdings Update
Strategy reported bitcoin transactions totaling $104.7 million in sales proceeds during the period. The company allocated $52.4 million from these sales to fund dividends on its preferred stock and $52.3 million toward share repurchases under the Digital Credit Securities Repurchase Program (8-K filing, 2026-08-03). The filing noted that aggregate and average sale prices are presented net of fees and expenses.
Preferred Stock Dividend Maintained
On July 31, 2026, Strategy announced it will maintain the regular dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock at 12.00% per annum for semi-monthly periods beginning on or after August 16, 2026 (8-K filing, 2026-08-03).
The company's board of directors declared semi-monthly cash dividends on STRC Stock payable August 31, 2026 to stockholders of record as of August 15, 2026, and payable September 15, 2026 to stockholders of record as of August 31, 2026 (8-K filing, 2026-08-03).
Management indicated it does not intend to recommend a change from the current 12.00% dividend rate "until STRC Stock demonstrates sustained trading at or near its $100 stated amount" (8-K filing, 2026-08-03).
Tax Treatment and Reserve Position
Strategy expects the August 31 and September 15 dividends will be characterized as non-taxable returns of capital to the extent of a shareholder's tax basis in STRC Stock for U.S. federal income tax purposes (8-K filing, 2026-08-03). The company advised shareholders to consult tax advisors regarding specific consequences.
As of August 2, 2026, Strategy's USD Reserve—maintained to support dividend payments on preferred stock and interest on outstanding debt—stood at $4.0 billion, including expected cash proceeds from unsettled ATM sales (8-K filing, 2026-08-03).
Repurchase Program Capacity
The company disclosed $893.8 million in aggregate purchase price remains available under its Digital Credit Securities Repurchase Program for preferred stock, and $1.0 billion remains under its MSTR Repurchase Program for class A common stock, both announced June 29, 2026 (8-K filing, 2026-08-03).
MarginX data shows Strategy is expected to report third-quarter 2026 results on October 30, with recent insider activity including options exercises and sales by Jarrod M. Patten totaling 1,950 shares.
This article was generated by MarginX from the 8-K filing on 2026-08-03. It is not investment advice.