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Key Takeaways
- Strategy sold 1,690 Bitcoin for $108.6 million and used the proceeds to repurchase over 1.15 million shares of its STRC preferred stock.
- STRC still trades below its $100 par value despite the buyback, closing at $95.01 as the company works to close the gap.
- Strategy also raised $653.1 million through common stock sales, pushing its USD reserve to $4.65 billion under its Digital Credit Capital Framework.
Strategy, the company formerly known as MicroStrategy, sold 1,690 Bitcoin for $108.6 million between August 3 and August 9 and used the proceeds to buy back shares of its STRC preferred stock. The company disclosed the transaction in a Form 8-K filing with the U.S. Securities and Exchange Commission on Monday. It marks the second consecutive week Strategy has sold Bitcoin rather than added to its holdings.
Details of the Latest Bitcoin Sale
The sale ran at an average price of $64,262 per coin, according to the Form 8-K filing. Strategy used the net proceeds to repurchase 1,152,020 shares of STRC, the company’s variable-rate perpetual preferred stock issued to help finance its Bitcoin accumulation strategy.
The company still holds 840,447 Bitcoin, the largest corporate Bitcoin treasury tracked in the market. Those coins carry an average purchase price of $75,385 each, for a total cost basis of $63.36 billion.
Bitcoin traded near $65,019 on Monday, roughly 13% below that average purchase price, meaning recent sales lock in a loss relative to the company’s original cost basis.
The August sale follows a similar transaction the prior week, when Strategy sold 1,638 Bitcoin. The filing listed no new Bitcoin purchases for the period, extending a pause in accumulation that has now stretched across multiple consecutive weeks.
STRC Preferred Stock Still Trades Below Par
STRC carries a monthly-resetting dividend, currently set at 12% annualized, designed to keep its share price close to a $100 par value. The stock has not consistently held that level. It closed at $95.01 on Friday, up 1.16% on the day, after falling as low as $71.25 over the past year. Shares ticked up to $95.55 in Monday’s premarket trading.
STRC has recovered roughly 33% from its low point. The gap to par has not closed despite the dividend payments and the $109 million buyback, though the buyback consumed most of Strategy’s remaining preferred repurchase authorization, leaving $785.2 million available for further purchases.
Equity Sales Add to the Company’s Cash Reserve
Strategy separately sold 6,585,682 shares of its common stock, ticker MSTR, through an at-the-market equity program, raising $653.1 million, of which it routed $650 million into its U.S. dollar reserve, which now stands at $4.65 billion.
In a post on the company’s X account, Strategy said the transactions increased its U.S. dollar reserve by $650 million and its preferred stock repurchases by $109 million. The company said the moves extended the duration of its dollar reserve by 143 days to 2.7 years and tightened STRC’s credit spread relative to Bitcoin by 10 basis points.
“As of 8/9/26, we hold ₿840,447 in our BTC Reserve and $4.65B in our USD Reserve.”
MSTR closed at $100.01 on Friday, up 3.26%, before edging 0.21% lower in Monday’s premarket session. Roughly $22 billion of the company’s MSTR issuance capacity remains unused.
A Framework Built to Prioritize Credit Over Accumulation
Strategy’s recent selling traces to its Digital Credit Capital Framework, adopted in late June. The framework authorizes limited Bitcoin sales to fund preferred stock dividends, buybacks and cash reserves in periods when issuing new equity looks less attractive than tapping the Bitcoin treasury directly.
Since adopting the framework, Strategy has paused new Bitcoin purchases while raising cash on a near-weekly basis. The company has said its reserves now cover several years of dividend obligations across its various preferred stock series.
Executive Chairman Michael Saylor has said he has not personally sold any Bitcoin. Whether Strategy’s weekly asset sales continue or the company resumes accumulating Bitcoin will depend on upcoming filings and how STRC’s share price responds to the current repair effort.
