MicroStrategy sells 1,638 BTC at a loss to help fund STRC preferred buybacks

MicroStrategy (now filing under "Strategy") sold 1,638 bitcoin last week, according to an 8-K filed Monday. The company raised $104.7 million, cutting its holdings to 842,138 BTC from 843,775. The sale price averaged $63,957 per coin, about $11,500 below MicroStrategy's $75,419 cost basis, implying a realized loss on the transaction. The company has not purchased bitcoin since June 22, its longest stretch without adding to holdings. Alongside the BTC sale, MicroStrategy sold roughly $291 million of MSTR common shares. It directed $52.4 million of the cash raised to dividends on its STRC preferred stock and used $52.3 million toward an $81 million repurchase of STRC preferred shares. The buyback is the second in two weeks under a $1 billion repurchase program. After these actions, cash reserves rose to about $4 billion. Management said that level represents roughly 2.3 years of runway. The backdrop is pressure in the preferred: STRC has traded below its $100 par value since mid-May. In effect, the company is selling bitcoin at a loss and issuing common equity to support the preferred, a mix that can dilute common shareholders and has weighed on the capital structure and investor sentiment. The optics also stand out against cofounder Michael Saylor's long-running "never sell" messaging. On Aug. 3, 2026, Saylor posted: "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." The statement draws a clear line between personal holdings and corporate treasury management. The sale arrived during a week dominated by negative crypto headlines, including a $100M+ Coldcard hack and reports of a $100M-plus MicroStrategy liquidation. Bitcoin still finished the week essentially flat, suggesting headline shock may be translating into less immediate price impact than in prior periods. MicroStrategy's latest moves highlight the tension between balance-sheet management and long-term BTC conviction. Selling bitcoin at a loss to support preferred stock and extend runway may be pragmatic, but it also shows how corporate treasury pressures can reshape the "HODL" narrative. Also on the radar: corporate treasuries, ETFs, and meme-coin flows.