August 12, 2026 – The firm offloaded 1,690 coins for $108.6 million, then raised $653.1 million from stock to swell its dollar reserve.
In Summary
Strategy sold 1,690 bitcoin for $108.6 million, below its $75,385 average cost.
The firm raised $653.1 million from MSTR shares, sending $650 million to its dollar reserve.
Bitcoin proceeds funded a buyback of 1,152,020 STRC preferred shares.
The reserve reached $4.65 billion, near 2.7 years of dividend coverage.
Holdings stand at 840,447 bitcoin, now roughly $9.7 billion underwater on paper.
The Strategy Bitcoin sale disclosed on Monday landed below the firm’s own average cost. Strategy sold 1,690 bitcoin last week for $108.6 million. Moreover, the coins fetched an average of $64,262 each. That figure sits well under the firm’s $75,385 average purchase price. Consequently, the trade booked a rare loss for the treasury giant.
A rare trade below cost basis
Strategy seldom parts with its coins. For years, the firm bought Bitcoin and simply held. However, last week clearly broke that habit. The company sold the coins between August 3 and August 9. Furthermore, it steered every dollar of the proceeds into preferred stock.
Specifically, the $108.6 million funded a buyback of 1,152,020 STRC preferred shares. Therefore, none of the bitcoin cash left the balance sheet as idle funds. Instead, the firm swapped a volatile asset for cheaper debt-like paper. In effect, the sale trimmed a costly dividend obligation.
The logic looks sharper on closer inspection. STRC recently traded near $95, below its $100 face value. So Strategy repurchased that paper at a modest discount. As a result, the firm cut future dividend costs cheaply. Above all, the deal shows capital discipline rather than distress selling.
The bigger raise came from shares
Meanwhile, Strategy pulled far more cash from equity. The firm sold 6,585,682 MSTR shares for $653.1 million. Most of that money went straight to safety. Indeed, $650 million lifted the company’s dollar reserve. Separately, the remaining $3.1 million joined its cash balance.
As a result, the reserve climbed to $4.65 billion by August 9. That buffer now shields dividend and interest payments for years. Notably, the raise leaned on stock rather than fresh bitcoin buying. So the week reversed the firm’s famous accumulation script.
What the Strategy bitcoin sale signals
The move follows a stated plan, not sudden panic. Back in July, Strategy launched a formal bitcoin monetization program. Under that framework, the firm trims coins to manage its preferred obligations. Additionally, it prefers issuing shares whenever market prices allow.
Still, the timing stings for long-term believers. Bitcoin trades near $63,900 today, below the firm’s blended cost. Thus, the wider hoard sits underwater on paper. Yet management frames these steps as disciplined balance-sheet defense.
The program has grown steadily through 2026. By late July, related sales already reached $218.4 million. Adding last week’s trade lifts that tally above $327 million. Clearly, coin sales now form a routine funding lever. Nevertheless, the firm insists its long bitcoin thesis stays intact.
A reserve built for tougher markets
Strategy has leaned heavily on its dollar reserve this year. The buffer opened at $2.25 billion in early 2026. Since then, repeated share sales have roughly doubled it. Now the reserve stands at $4.65 billion, near 2.7 years of coverage.
This cushion matters because Strategy carries hefty dividend duties. Its stack of preferred securities demands steady payouts every quarter. By contrast, bitcoin generates no income while it simply sits. Hence, the firm needs dependable cash to honor those promises.
Four preferred series now sit atop that obligation. They carry rich coupons, including one variable rate above eleven percent. Together, they hand Strategy scale but also fixed cash demands. Therefore, a deep reserve turns from luxury into necessity. In short, the treasury must keep dividends flowing through any downturn.
Holdings, losses and firepower
Strategy still holds a commanding 840,447 bitcoin. The firm paid $63.36 billion for that entire stack. At current prices, the hoard is worth roughly $53.7 billion. Hence, the unrealized paper loss now approaches $9.7 billion.
The second quarter exposed that strain very plainly. Strategy booked an $8.22 billion net loss for the period. Chiefly, an $8.32 billion digital-asset write-down drove the red ink. Even so, the firm retains plenty of room to maneuver.
Ultimately, the company keeps sizable repurchase capacity in reserve. It holds $1 billion for MSTR buybacks and $785.2 million for preferred repurchases. For readers, the wider message reads clearly. Strategy still champions Bitcoin loudly, but its recent cash moves prioritize survival over accumulation.
The shift carries weight for the whole treasury model. Rival firms watch Strategy as the sector’s clearest bellwether. So its pivot toward selling may reshape peer behavior. Meanwhile, investors will track whether Bitcoin recovers above the firm’s cost. That single line will decide how this chapter finally reads.
