Strategy sells $105M in Bitcoin as treasury shifts to USD reserve

Strategy sold 1,638 bitcoin for $104.7 million last week, cutting its holdings to 842,138 BTC as the company shifts toward its dollar reserve.

Michael Saylor, co-founder and executive chairman of Strategy, announced the transaction on X, saying the firm increased its USD reserve by $250 million to $4 billion and repurchased $81 million of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC).

The bitcoin sale, executed between July 27 and Aug. 2 at an average price of $63,957 per coin, was disclosed in an SEC 8-K filing Monday. Strategy also sold 3,011,361 MSTR shares for approximately $290.6 million during the period, with $22.7 billion in shares remaining available for issuance. The company's remaining BTC holdings, acquired at an average price of $75,419, carry roughly $10.9 billion in paper losses at current prices.

The sale is part of Strategy's Digital Credit Capital Framework, which restricts the USD reserve to preferred-stock dividends and debt interest payments, reducing the need to sell bitcoin during market stress. Bitcoin traded near $62,400 following the filing, while MSTR shares fell 1.7 percent in pre-market trading.

The company repurchased 912,143 STRC shares for $81.2 million and maintained STRC's annual dividend rate at 12 percent, saying it does not intend to recommend a reduction until the shares trade consistently near their $100 par value. Strategy also approved a $1 billion common stock buyback and expanded its BTC Monetization Program to allow up to $5 billion in bitcoin sales to fund its reserve, dividends, interest payments, and securities repurchases.

The moves follow a difficult second quarter for the company, which reported an $8.2 billion loss driven almost entirely by unrealized paper losses on its bitcoin holdings. Bitcoin was more than 40 percent lower at the end of Q2 2026 compared to the same period a year earlier. MSTR shares closed Friday at $93.28, down roughly 80 percent from their 2025 peak.

Strategy's remaining bitcoin holdings represent approximately 4 percent of the 21 million supply cap. The firm's treasury reduction comes as other corporate bitcoin holders face similar scrutiny — Trump Media & Technology Group transferred 2,628 BTC worth approximately $165 million to Crypto.com on Aug. 2, raising questions about whether the company is reducing its exposure.

Analysts at TD Cowen and Benchmark maintained Buy ratings on Strategy after its Q2 call, with both telling clients that returning STRC preferred stock to par is now management's main goal. Benchmark cut its MSTR price target to $435 from $570, while TD Cowen retained a $260 target.

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