Strategy sold 1,690 bitcoin and used the $108.6 million to buy back $108.6 million worth of its STRC preferred shares.

On Aug. 10, blockchain media outlet Cointelegraph reported that Strategy disclosed the transactions in an 8-K filing submitted to the U.S. Securities and Exchange Commission for the period from Aug. 3 to Aug. 9. This marks the fourth disclosed sale of Strategy's bitcoin this year. The company currently holds 840,447 bitcoin.

Strategy sold bitcoin for a second straight week to repurchase STRC. STRC is a floating-rate preferred stock designed to target monthly dividends. The company sold 1,690 bitcoin for $108.6 million and bought 1.15 million STRC shares for the same amount.

The sale price was lower than the average purchase price for its total holdings. Strategy sold the bitcoin at an average net price of $64,262 per coin. The average purchase price for its total bitcoin holdings is $75,385 per coin, including fees and expenses.

The same pattern continued the previous week. Strategy sold 1,638 bitcoin for $104.73 million from July 27 to Aug. 2, and also used the funds to buy STRC. This again confirmed that the bitcoin sales are not simply to raise cash but are being tied to funding preferred-share repurchases.

The company still has capacity for additional buybacks. The filing showed the remaining limit under its digital credit securities redemption program is $785.2 million. It can also use an additional $1 billion under its Class A common stock repurchase program.

Dollar reserves are continuing to expand. Strategy said dollar reserves stood at $4.65 billion as of Aug. 9, up from about $4 billion in the previous weekly update. The company said it allocated $650 million of $653.1 million in net proceeds secured from recent sales of MSTR stock to reserves, and that the figure also includes expected proceeds from at-the-market sales that have not yet settled.

Markets are also watching STRC's share-price performance. STRC recovered the $90 level it recorded on Aug. 3 while buybacks continued. The rebound from the June low is 24 percent. In premarket trading on Aug. 10, STRC rose 0.46 percent to $95.45, and MSTR gained 0.25 percent to $100.26. STRC closed at $95 in the previous session on Aug. 7.

Strategy is the listed company that holds the most bitcoin. Recently, however, it has been leaning toward preferred-share redemptions and expanding dollar reserves rather than additional bitcoin purchases. Markets are therefore watching how much more Strategy will use its remaining redemption limits, and what balance it will strike between bitcoin sales and reserve management.