Bitcoin losses tied to a hack involving Coldcard hardware wallets have now surpassed $100 million, according to the latest update.

Strategy disclosed in an Aug. 3 SEC filing that it sold 1,638 BTC for $104.7 million and issued roughly 3.01 million MSTR shares for $290.6 million between July 27 and Aug. 2, raising nearly $395 million. The company said the proceeds were used to fund preferred dividends, repurchase 912,143 STRC shares for $81.2 million, and top up its U.S. dollar reserve to $4 billion. Strategy did not use any of the capital to purchase additional Bitcoin. Total 2026 Bitcoin disposals climbed to 5,258 BTC. Strategy estimated the $4 billion reserve would cover about 27 months of preferred-dividend and debt-interest payments. Executive Chairman Michael Saylor said the firm has never had a "never sell" policy and still expects to remain a net buyer of Bitcoin over time. Why it matters: Investors may read the transaction mix as a softer Bitcoin-accumulation signal if capital continues to be absorbed by preferred-security support rather than incremental BTC purchases. Market sentiment: Cautiously bearish; risk-off; flow-led de-risking. Traders cited the combination of BTC sales and equity issuance without follow-on Bitcoin buying as a negative signal for accumulation. Comparable case: In July 2022, Tesla sold 75% of its bitcoin holdings for $963 million to boost cash amid uncertainty tied to China COVID lockdowns; Tesla shares saw limited after-hours reaction (TechCrunch). The key difference is that Tesla framed the move as short-term corporate liquidity management, while Strategy appears to be monetizing Bitcoin within a recurring preferred-securities funding framework. Ripple effects: The primary transmission channel is treasury liquidity. Selling Bitcoin can shift Strategy from a marginal buyer to a seller, weakening the demand narrative around corporate BTC treasuries. Equity issuance may also redirect value toward preferred securities if common-share dilution outpaces Bitcoin accumulation. If STRC remains below par, additional buybacks or reserve-building could continue to divert funds from Bitcoin purchases. Opportunities: If STRC rebounds toward $100 and future filings show capital raises resuming without BTC sales, the financing channel could support renewed Bitcoin accumulation. That combination could serve as a re-entry signal for investors tracking Strategy-linked Bitcoin exposure. Risks: If upcoming filings indicate further BTC monetization or continued MSTR issuance while STRC stays below par, trimming Strategy-linked exposure could help limit dilution risk and potential treasury drawdowns.

UPDATE: On-chain analytics firm Santiment reports that Bitcoin "whales" have accumulated nearly 19,700 BTC since July 29, while retail investors' holdings continue to decline.

Morning Minute — Tyler Warner (opinions are my own; not necessarily Decrypt's). Coldcard, a hardware wallet long trusted by serious Bitcoin holders, is now tied to what appears to be one of the largest self-custody thefts on record. What happened Attackers have been siphoning Bitcoin from Coldcard Mk3 wallets without ever gaining physical access to the devices. Investigators say this is not a phishing campaign. The root cause is a firmware vulnerability. According to reports, a Coldcard firmware update released in March 2021 introduced a software fallback for seed generation that bypassed the device's hardware random number generator. That design change reduced entropy sharply, with effective key strength falling from the intended 128 bits to roughly 40 bits, making seeds far more guessable. With private keys reconstructable from weakened entropy, funds held in offline setups—including wallets stored in places like safety deposit boxes—could still be swept. One Canadian victim reported losing 18.25 BTC, saying the most painful part was that he "did everything right." Scale and timeline The thefts began last week and accelerated quickly. Initial estimates of around $38 million climbed as analysts identified additional activity. Galaxy Research now reports about 1,367 BTC stolen—roughly $88.6 million—spread across 4,585 addresses, executed in three distinct sweep waves. The firm flagged another wave on Saturday. Galaxy says the exploit appears to be ongoing and expects all vulnerable devices could eventually be drained if users don't act. The firm has provided roughly 600 suspected attacker addresses to federal investigators. Researchers estimate a potential fourth wave could raise total losses toward $114 million. They also note that some of the newest sweeps may be preventable by front-running transaction settlement in the mempool. AI's role—and why it matters Coinkite, the maker of Coldcard, said it must assume the attacker used AI to comb the open-source firmware for weaknesses. Coinkite added that its own AI-assisted code review conducted weeks earlier did not catch the bug. Alex Thorn, Galaxy's head of research, characterized the sweep behavior as programmatic and "probably orchestrated with a large language model." Market observers see a troubling pattern: over a short period, AI has been associated with cracking cryptographic candidates, enabling sandbox escapes, and now supporting large-scale wallet drains. For the crypto industry, that sharpens questions about how AI is shifting the balance between offense and defense—and what it means for the core promise of self-custody. What users should do Owners of Coldcard Mk3 devices—or any potentially affected units—should consult Coinkite's official channels for guidance and firmware advisories before taking action. Treat funds on any potentially vulnerable device as at risk until a clear patch or migration path is confirmed. Consider moving coins only after verifying updates and following manufacturer instructions. If you're unsure, seek expert help. This story is still developing. I'll continue to track updates as investigators and the vendor respond.

OranjeBTC, a publicly traded company in Brazil, disclosed it purchased 30 bitcoin for $1.9 million. The acquisition lifts the firm's total bitcoin holdings to 3,948 BTC, keeping it in the lead among Latin American public companies by disclosed BTC reserves.

MicroStrategy disclosed that it sold 1,638 Bitcoin for $104.7 million late last month, directing the bulk of proceeds to strengthen liquidity and support its perpetual preferred stock STRC, according to an SEC filing and updates from executives. The company sold the Bitcoin between July 27 and Sunday at an average price of $63,957 per BTC. Of the $104.7 million raised, $52.4 million went to fund dividends on STRC, while $52.3 million was used to repurchase STRC shares. Following the sale, MicroStrategy said its Bitcoin reserve totals 842,138 BTC, purchased for an aggregate cost of about $63.5 billion. Over the same period, the company also sold $290.6 million of MSTR common stock. It allocated $250 million to its U.S. dollar reserve, used $28.9 million for additional STRC buybacks, and added $11.7 million to cash on hand. Executive chairman Michael Saylor wrote on X that MicroStrategy repurchased $81.2 million of STRC during the period and extended its U.S. dollar funding runway by 57 days to roughly 2.3 years. He said the firm now holds ₿842,138 in its BTC reserve and about $4.0 billion in its USD reserve. The transactions follow a capital framework introduced at the end of June that explicitly allows Bitcoin sales to cover preferred dividends, service debt, execute approved buybacks, and build the USD reserve. MicroStrategy previously sold 3,588 BTC for about $216 million on July 6 and disposed of 32 BTC in early June, marking its first Bitcoin sales since a 2022 tax-related transaction. On the July 31 Q2 earnings call, management signaled a shift in capital allocation: the company will no longer deploy every available dollar into Bitcoin. CEO Phong Le said MicroStrategy will pause additional Bitcoin purchases while STRC trades below its $100 stated value, with the board prioritizing larger cash buffers. STRC remains central to the company's fundraising strategy, making its market price important for future capital raises. As of Monday premarket, STRC traded around $89.40, roughly 10.6% below par, while MSTR shares were modestly lower. MicroStrategy kept STRC's annual dividend rate at 12% for August despite the discount. A policy change dated June 29 shifts dividend decisions to consider market price, competing yields, Bitcoin volatility, credit spreads, and cash reserve coverage, rather than automatically raising payouts whenever STRC trades under par. Management has increasingly leaned on repurchasing STRC at discounted prices instead of repeatedly lifting dividends. Filings show about $25 million in STRC repurchases between July 20–26, with nearly $1 billion still available under the existing buyback authorization. The company's recent moves—selling some BTC, raising cash through MSTR share sales, building a roughly $4 billion USD reserve, and buying back discounted STRC—are aimed at improving liquidity and preserving financing flexibility. Executives have said restoring STRC closer to its $100 stated value is a priority before resuming more aggressive Bitcoin accumulation. The pivot comes amid outside calls for MicroStrategy to slow purchases and rebuild cash cushions. CryptoQuant founder Ki Young Ju said on X that the company should "pause Bitcoin purchases, rebuild cash reserves, and adopt a systematic framework," warning that dividend coverage had tightened. MicroStrategy reported an $8.22 billion net loss in Q2, largely reflecting an $8.32 billion unrealized accounting loss on its Bitcoin holdings under fair-value rules. Management said the accounting impact does not change its long-term Bitcoin strategy. Benchmark and H.C. Wainwright maintained buy ratings after the quarter, though Benchmark reduced its price target. Both firms pointed to the larger cash reserve, preferred buybacks, and strengthened financing posture as potential positives for future capital raising, while noting the outlook remains closely tied to Bitcoin prices and investor demand for STRC. MicroStrategy's bottom line: the company is temporarily reducing Bitcoin exposure to support preferred dividends, repurchase discounted STRC, and expand its dollar reserve—a deliberate shift toward liquidity and financing stability that it says could improve fundraising capacity and enable future Bitcoin purchases once STRC recovers and funding flexibility improves.

Michael Saylor says he has never sold any bitcoin he owns personally, drawing a clear line between his private holdings and Strategy Inc.'s corporate treasury. The comments came after Strategy (Nasdaq: MSTR) disclosed its third bitcoin sale of 2026, leaving the company with 842,138 BTC. Saylor, Strategy's executive chairman, said on Aug. 3 that he has never sold a single satoshi from his own stash. He positioned his "Never Sell Your Bitcoin" message as a personal principle shared among long-term savers, not a rule for how a public company must run its balance sheet. Strategy has stated since 2020 that it may buy or sell bitcoin as part of capital, liquidity and obligation management. Saylor also said on Aug. 1 that the company expects to remain a net bitcoin buyer over time, while using its BTC Monetization Program to add financial flexibility. He noted the program was announced June 29, ahead of the release of second-quarter results, and operates under a board-approved capital plan. Strategy formalized its approach on June 29 with a Digital Credit Capital Framework. The plan established a $2.55 billion dollar reserve and authorized up to $1.25 billion in additional reserve-building bitcoin sales. It also included repurchase programs of up to $1 billion each for preferred securities and MSTR common stock. In an SEC filing, Strategy listed three approved uses for bitcoin monetization: funding the dollar reserve, supporting preferred dividends and debt interest, and financing securities repurchases. Any transactions outside those purposes or beyond set limits require additional board approval. The program has no fixed end date. The framework provides $3.8 billion of liquidity coverage combining the existing reserve and authorized monetization capacity. Strategy said this equates to about 25.9 months of expected preferred dividend and interest expenses, with a minimum reserve threshold set at 12 months of those obligations. Strategy's 2026 sales show how the policy works in practice. Its first reported sale this year involved 32 bitcoin for about $2.5 million to help cover preferred stock dividend obligations, the company's first disposal since 2022. A larger sale followed: 3,588 bitcoin for roughly $216 million, an average of about $60,137 per coin. Strategy said the proceeds supported Digital Credit dividend payments, and the company reported holdings of 843,775 BTC after that transaction, alongside the $2.55 billion dollar reserve. Saylor has described the overall approach as active capital management, allowing Strategy to issue securities when conditions are favorable and repurchase them when management believes doing so better serves shareholders.

Coinkite, the maker of Coldcard Bitcoin hardware wallets, said in a late-July 2026 disclosure that a firmware build error introduced in March 2021 led some devices to generate recovery mnemonics from a narrower set of possibilities, weakening private-key randomness. Researchers at Galaxy Research reported that the flaw was exploited in multiple waves. Observed Bitcoin losses rose from about $88 million to nearly $114 million over several days. After researchers warned that additional vulnerable addresses could still be attacked, many Coldcard users moved their funds. Coldcard is a Bitcoin-only wallet that supports offline signing via microSD card, with optional QR code functionality. First launched in 2017, it has been widely viewed as one of the more security-focused Bitcoin hardware wallets.

Cardone Capital, which has an estimated valuation of $5.3 billion, has purchased an additional 350 bitcoin (BTC) valued at $22.3 million.