Strategy sold 1,638 Bitcoin for about $104.7 million during the week ended Aug. 2, using a portion of its cryptocurrency reserve to support preferred-stock distributions and repurchases of its STRC security, according to a filing with the U.S. Securities and Exchange Commission. The sales mark the first reported use of the company’s Bitcoin holdings under its expanded BTC Monetization Program, which permits up to $5 billion in potential Bitcoin sales.
The company said it sold the Bitcoin between July 27 and Aug. 2 at an average price of $63,957 per coin. Its holdings fell to 843,138 BTC after the transactions, leaving Strategy with roughly 4% of Bitcoin’s fixed 21 million-coin supply.
Strategy reported that its remaining Bitcoin was acquired for approximately $63.5 billion, including fees and expenses, at an average cost of $75,419 per BTC. At a stated valuation of about $52.6 billion, the position carried around $10.9 billion in unrealized losses.
The sale places Strategy’s Bitcoin reserve alongside share issuance and cash management as an active source of corporate funding. For years, the company’s market identity has been closely tied to continuously accumulating Bitcoin through debt and equity financing. Its latest capital framework gives management a defined route to sell some of those holdings when it needs to fund payments linked to its preferred securities.
Share sales lift cash reserve to $4 billion
Alongside the Bitcoin sale, Strategy raised approximately $290.6 million through the sale of 3,011,361 MSTR shares during the same reporting period. The company said $22.7 billion of common stock remained available for issuance and sale under its program as of Aug. 2.
Most of those proceeds—$250 million—were directed to the company’s USD Reserve, lifting the reserve to $4 billion. Strategy used another $28.9 million to repurchase STRC, while the remaining $11.7 million was added to cash.
The USD Reserve has a narrowly defined role under Strategy’s Digital Credit Capital Framework. The company said the reserve is intended to cover dividends on preferred stock and interest payments, rather than finance general operations or additional Bitcoin purchases. That structure gives Strategy a cash buffer for contractual capital costs while keeping its large Bitcoin position exposed to market prices.
Strategy had already increased the reserve by $525 million to $3.75 billion during a five-week pause in Bitcoin purchases that ended July 26. At that point, it held 843,775 BTC. The subsequent sale of 1,638 BTC brought the balance down to 843,138 BTC.
A wallet linked to Strategy transferred 299.8 BTC, worth about $18.9 million at the time, on Sunday, blockchain-monitoring account Lookonchain reported. The transfer was disclosed separately from the company’s SEC filing, and wallet movements do not by themselves establish whether coins were sold, moved between custodians, or used in another internal transaction.
Repurchase authority targets digital credit securities
The updated framework authorizes up to $1 billion in repurchases of Strategy’s digital credit securities, with STRC designated as the initial priority. It also includes a separate $1 billion authorization for common-stock buybacks.
STRC is one of Strategy’s preferred-stock instruments and has a $100 stated value. The company adopted a flexible monthly dividend policy for the security, tied to that par value, and maintained STRC’s variable annualized dividend rate at 12% on Friday.
The combination of Bitcoin-sale authority, a cash reserve, share issuance capacity and repurchase programs gives Strategy several ways to manage the cost of its preferred securities. It also creates a more explicit link between the company’s Bitcoin treasury and the obligations generated by the capital structure built around it.
Selling Bitcoin into a weaker market would reduce the company’s BTC exposure and could crystallize losses relative to its average purchase price. But the program also gives Strategy an alternative to relying solely on new common-share issuance when it needs cash for dividends, interest or security repurchases.
Second-quarter loss reflected Bitcoin’s decline
Strategy reported an $8.2 billion net loss for the second quarter, compared with $10 billion in net income a year earlier. The company attributed much of the reversal to unrealized losses on its Bitcoin holdings.
Its Bitcoin balance rose 11% during the quarter and reached a peak of roughly 846,000 BTC before the company began selling. Bitcoin ended the quarter more than 40% below its level in the second quarter of 2025, according to the figures provided by Strategy.
Bitcoin traded near $62,400 after the filing, following a weekend low around $62,217. Strategy’s MSTR shares were down 1.7% in pre-market trading, after closing Friday at $93.28, down 0.1% for the prior week. The stock was about 80% below its 2025 peak, while Bitcoin had declined 4.1% over the same week.
Analyst targets have also moved lower. Benchmark cut its target for MSTR to $435 from $570 and lowered its year-end 2026 Bitcoin assumption to $100,000 from $125,000. TD Cowen maintained a $260 target that it had set in late June after previously reducing its target from $400 earlier in the quarter.
Strategy’s filing does not set a schedule for additional Bitcoin sales. Its authorization to monetize as much as $5 billion of BTC gives management substantial flexibility, but the reported sale was small relative to its 843,138-coin reserve. Future disclosures will show whether the latest transaction remains a limited funding measure or becomes a recurring part of how Strategy finances its preferred-stock commitments.
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