Strategy sells 1,638 BTC for $104.7M, uses proceeds for dividends and $81.2M STRC buybacks

Strategy, a Bitcoin treasury company, disclosed in an SEC Form 8-K that it sold another tranche of Bitcoin last week, offloading 1,638 BTC for $104.7 million. The company said the proceeds were used to meet preferred dividend obligations and to repurchase its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), bringing total Bitcoin holdings down to 842,138 BTC. The sale was executed at an average price of $63,957 per BTC, below Strategy's average purchase price of $75,419. At current market prices, the company's 842,138 BTC position is valued at about $52.6 billion. Strategy reported buying back $52.3 million of STRC using funds from the Bitcoin sale. The same 8-K also detailed an equity issuance: Strategy sold 3,011,361 shares of MSTR, raising $290.6 million. The company used the bulk of those proceeds to lift its USD reserve to $4 billion, repurchased an additional $28.9 million of STRC, and directed the remaining $11.7 million to cash. As of August 2, 2026, Strategy said it has $22.7 billion of MSTR shares available for future issuance and sale. Based on Bitcoin Treasuries data cited in the report, Strategy acquired its Bitcoin for $63.51 billion at an average cost basis of $75,419. With BTC trading near $64,000, the position implies roughly $10 billion in unrealized losses. The latest disposal resulted in an estimated realized loss of about $20 million. Michael Saylor posted a Bitcoin tracker chart on X on Sunday with the caption "Bitcoin Drive engaged." His weekend posts have often been read as hints of impending BTC purchases, though the tone has become more opaque as Strategy shifts toward liquidity management. Strategy's recent updates underscore that pivot. Under its Digital Credit Capital Framework, the USD reserve is earmarked for preferred dividends and interest payments. The company has also authorized a $1 billion repurchase program, adopted a flexible STRC dividend policy, and approved a separate $1 billion common stock buyback. It also expanded its Bitcoin monetization program, allowing the sale of up to $5 billion in BTC to fund reserves, interest payments, securities repurchases, and dividends. The move is notable in light of Saylor's February 2024 remarks that he had "no plans to sell any Bitcoin," describing Strategy's approach as "accumulation without an exit." While the latest sale represents a small portion of its holdings, it signals the company's willingness to tap BTC to support a USD reserve as STRC, a high-yield preferred instrument, takes priority. In total, Strategy used $52.3 million of the $104.7 million raised from the Bitcoin sale, along with a portion of the equity-sale proceeds, to repurchase $81.2 million of STRC. STRC carries a 12% annual payout, making the $4 billion USD reserve central to covering dividend outflows without being forced to sell Bitcoin at unfavorable prices. Management also frames STRC repurchases as a way to reduce future dividend obligations while BTC trades at lower levels. Saylor has faced criticism for the shift. On X, he defended the distinction between personal holdings and corporate treasury decisions, writing: "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." Peter Schiff pushed back, arguing that Saylor created a misleading impression and calling STRC "an albatross around MSTR's neck," claiming it would pressure the company into continued BTC sales and common-stock dilution. Schiff wrote that the recent activity "reduced Bitcoin YTD Yield to 3.5%, 74% below its May peak," citing the sale of 1,638 BTC and more than 3 million MSTR shares to raise cash and buy back STRC. Disclaimer: This material is for informational purposes only and does not constitute legal, tax, investment, financial, or other advice.