Strategy sells 1,638 bitcoin to fund preferred dividends and STRC buybacks

Strategy sold 1,638 bitcoin for $104.73 million during the week ending Aug. 2, using the proceeds to pay preferred-stock dividends and repurchase STRC shares while maintaining a $4 billion U.S. dollar reserve. The sale, disclosed in an 8-K filed with the U.S. Securities and Exchange Commission on Aug. 3, was executed at an average net price of $63,957 per coin and reduced the company’s holdings to 842,138 BTC, down 5,225 BTC from its June 2026 peak of 847,363 BTC. Chief Executive Officer Phong Le said on CNBC that Strategy would continue actively managing its capital structure through what he described as a bitcoin bear cycle, including rotating into bitcoin and selling some holdings when needed. He said the company still expects to create shareholder value and outperform bitcoin in the next bull run. Strategy started buying bitcoin in August 2020 as a hedge against inflation and to seek stronger shareholder returns during the COVID-19 pandemic, and it remains the largest corporate holder of the asset with coins worth about $53.8 billion. Strategy said $52.4 million of the sale proceeds went to preferred dividends and $52.3 million to STRC repurchases. Total STRC buybacks reached $81.2 million for 912,143 shares, with the remaining $28.9 million funded by sales of MSTR common stock. The latest buyback was the second under a $1 billion STRC repurchase program launched on June 29, leaving $893.8 million of capacity. The company said the trades tightened STRC’s Bitcoin credit spread by five basis points and extended its USD duration by 57 days to 2.3 years. Alongside the bitcoin sale, Strategy sold 3,011,361 MSTR common shares for $290.6 million, adding $250 million directly to its dollar reserve. The reserve is intended to cover at least 12 months of preferred dividend and interest obligations of about $1.76 billion a year. Strategy has not bought bitcoin in six weeks and last week reported an $8.22 billion loss for the second quarter of 2026, though Le said the current paper loss was not important for now and argued the company’s role in bitcoin should be judged by whether it is increasing bitcoin per share and creating value for shareholders. The move came as smaller public crypto treasury firms continued buying into a softer market. Strive said it bought 20 bitcoin at about $63,191 each for roughly $1.3 million, taking holdings to 20,020 BTC. American Bitcoin said its treasury had grown past 8,000 BTC after record second-quarter mining output, despite a 1-for-15 reverse split on July 2 to maintain Nasdaq listing compliance. Bitmine Immersion Technologies expanded its Ether treasury to 5,797,813 ETH after adding 10,399 tokens, giving it about 4.8% of Ethereum’s 120.7 million-token supply. BTC was trading near $62,600 on Aug. 3, while MSTR shares were down about 1.9% in premarket trading.