Strategy Offloads 1,638 BTC For $105M, Buys Back $81.2M In STRC

Bitcoin treasury company Strategy sold another tranche of Bitcoin (BTC) last week, according to an 8-K filing with the United States Securities and Exchange Commission (SEC).

Strategy sold 1,638 BTC for $104.7 million, using the proceeds to fund dividend obligations and repurchase STRC stock. The sale reduces the company’s total holdings to 842,138 BTC.

Strategy Selling Bitcoin Again

Strategy sold the Bitcoin (BTC) at an average sale price of $63,957, significantly lower than the average acquisition cost of $75,419. The company now holds 842,138 BTC, worth $52.6 billion at current prices. Strategy used the proceeds from the sale toward preferred stock dividend obligations and repurchased $52.3 million worth of Variable Rate Series A Perpetual Stretch Preferred Stock (STRC).

Monday’s 8-K filing also revealed that Strategy sold 3,011,361 MSTR shares, raising $290.6 million from the sale. The company used the proceeds to increase its USD reserve to $4 billion and repurchase $28.9 million of STRC. The remaining $11.7 million was redirected toward its cash balance. The company has $22.7 billion worth of MSTR shares available for issuance and sale as of August 2, 2026.

Strategy’s Bitcoin stash carries almost $11 billion in paper losses

Another Cryptic Saylor Post

Saylor took to X on Sunday, posting a Strategy Bitcoin tracker chart with the caption “Bitcoin Drive engaged.” Saylor’s weekend posts have typically hinted at an imminent BTC buy, but they’ve gotten cryptic in recent weeks as Strategy shifts priorities.

The company’s Digital Credit Capital Framework restricts its USD reserve to preferred stock dividends and interest payments. It also authorized a $1 billion repurchase program and adopted a flexible STRC dividend policy. Strategy also approved a $1 billion common stock buyback program, expanding its Bitcoin monetization program to allow the sale of up to $5 billion in BTC to fund its reserve, interest payments, securities repurchase, and dividends.

What Does Strategy Selling Bitcoin Mean For The Market?

Michael Saylor once claimed in February 2024 that he had “no plans to sell any Bitcoin,” calling Strategy’s Bitcoin push “accumulation without an exit.” A lot has changed since that bold claim, with Strategy now selling part of its Bitcoin holdings as STRC, its high-yielding preferred stock takes precedence.

While the sale represents a minuscule fraction of Strategy’s Bitcoin holdings, it is significant because the company built its identity around its Bitcoin reserve and is now selling to fund a USD reserve.

According to data from Bitcoin Treasuries, Strategy currently holds 842,138 BTC, purchased for $63.51 billion, at an average cost basis of $75,419. Bitcoin is currently trading around the $64,000 mark, putting Strategy’s position roughly $10 billion in the red. The latest Bitcoin sale left the company with a realized loss of around $20 million.

STRC Taking Precedence

Strategy used $52.3 million out of the $104.73 million raised from its Bitcoin sale, along with a portion of the funds raised by selling its common stock, to purchase $81.2 million in STRC stock. Its USD reserve now holds $4 billion, which will be utilized to meet dividend obligations on STRC. STRC has a 12% annual payout, representing a significant outflow.

Strategy’s USD reserve helps cover its dividend obligations without forced selling of BTC at unfavorable price levels. Repurchasing STRC also helps reduce future dividend obligations while BTC trades at lower levels. While this is rational, it flies in the face of Saylor’s “never sell” claim.

Unsurprisingly, Saylor has come under heavy criticism for Strategy’s recent selling spree. The Strategy co-founder took to X to defend his decision, stating,

“When I say “Never Sell Your Bitcoin,” I speak as one saver to another. I have never sold mine. Not one satoshi. Strategy is a public company, not my wallet. Since 2020, it has disclosed it may buy or sell $BTC to manage capital. Our shared conviction in Bitcoin remains unchanged.”

However, the argument faced intense backlash, with Peter Schiff responding,

“You knew the impression you were creating, and you never bothered to clarify it. So either that was a deliberate attempt to deceive, or you actually meant that Strategy would never sell.”

Schiff called STRC an albatross around MSTR’s neck, forcing continued BTC sales and common stock dilution.

“In the past week, @saylor sold 1,638 Bitcoin & more than 3 million $MSTR shares to raise cash and buy back $STRC. This reduced Bitcoin YTD Yield to 3.5%, 74% below its May peak. STRC is now an albatross around MSTR’s neck, ensuring continued Bitcoin sales & common-stock dilution.”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.