Key Takeaways
- • Strategy Inc. (Nasdaq: MSTR) sold 1,638 Bitcoin between July 27 and August 2, 2026, at an average price of $63,957 per coin, generating roughly $104.7 million in proceeds, according to an 8-K filing with the SEC.
- • The sale is the second-largest disposal of the year and brings the company's holdings to 842,138 BTC, acquired at an average cost of roughly $75,400 per coin, or about $63.5 billion in total.
- • At a current price of around $62,400, Strategy sits on unrealized paper losses of just under $11 billion on its Bitcoin portfolio.
- • Proceeds are being used to fund preferred stock dividends and repurchases, including roughly $52.4 million in STRC dividends and $52.3 million in STRC repurchases, under a newly established Digital Credit Capital Framework.
- • Strategy reported a Q2 2026 net loss of $8.22 billion, driven by $8.32 billion in unrealized Bitcoin losses, a sharp reversal from a $10.02 billion profit a year earlier.
Summary
Strategy Inc. (Nasdaq: MSTR) offloaded 1,638 Bitcoin between July 27 and August 2, according to an 8-K filing with the US Securities and Exchange Commission submitted on Monday. The average selling price was $63,957 per Bitcoin, generating proceeds of roughly $104.7 million. The transaction is the second-largest Bitcoin sale of the year. Following the sale, the company's holdings fall to 842,138 BTC, which were acquired at a total cost of about $63.5 billion, or an average purchase price of roughly $75,400. At the current price of around $62,400, the position carries paper losses of just under $11 billion, according to the report. The holdings still represent about four percent of the 21 million Bitcoin that will ever exist.
The sales contrast sharply with years of messaging from founder and Executive Chairman Michael Saylor, who had repeatedly said the company had no exit strategy for its Bitcoin and would never sell. In practice, Strategy has now sold regularly. In early June, the company sold 32 Bitcoin, its first documented disposal since a tax-motivated transaction in 2022. On July 6, it sold 3,588 Bitcoin for around $216 million. Under the "BTC Monetization Program" introduced in the spring, the company is permitted to sell Bitcoin worth up to five billion dollars.
The proceeds are tied to the company's financing structure, which relies on convertible bonds and several series of preferred stock. According to the filing, roughly $52.4 million of the latest proceeds went toward dividends on the STRC preferred stock, and another $52.3 million was used to repurchase that stock. In the same period, Strategy sold 3,011,361 MSTR common shares for around $290.6 million. Of that, $250 million was added to the USD reserve, which grows to four billion dollars and is earmarked exclusively for dividend and interest payments. Under the new "Digital Credit Capital Framework," the company also established a one-billion-dollar repurchase program for its credit securities, with the stated goal of returning STRC toward its $100 par value. The annualized STRC dividend remains at 12 percent.
The sales come against a weak financial backdrop. For the second quarter of 2026, Strategy reported a net loss of $8.22 billion, compared with a profit of $10.02 billion in the year-earlier quarter. The loss was driven almost entirely by $8.32 billion in unrealized paper losses on Bitcoin holdings, as the Bitcoin price ended the quarter more than 40 percent below its year-earlier level. The operating software business remained stable but small, with revenue of $122.4 million, up 6.9 percent year over year. CFO Andrew Kang pointed to 18 months of uninterrupted dividend payments and a USD reserve that he said covers obligations for more than two years. Saylor said he wants to establish "Digital Credit as a new asset class" during a period of muted Bitcoin sentiment.
The sales contrast sharply with years of messaging from founder and Executive Chairman Michael Saylor, who had repeatedly said the company had no exit strategy for its Bitcoin and would never sell. In practice, Strategy has now sold regularly. In early June, the company sold 32 Bitcoin, its first documented disposal since a tax-motivated transaction in 2022. On July 6, it sold 3,588 Bitcoin for around $216 million. Under the "BTC Monetization Program" introduced in the spring, the company is permitted to sell Bitcoin worth up to five billion dollars.
The proceeds are tied to the company's financing structure, which relies on convertible bonds and several series of preferred stock. According to the filing, roughly $52.4 million of the latest proceeds went toward dividends on the STRC preferred stock, and another $52.3 million was used to repurchase that stock. In the same period, Strategy sold 3,011,361 MSTR common shares for around $290.6 million. Of that, $250 million was added to the USD reserve, which grows to four billion dollars and is earmarked exclusively for dividend and interest payments. Under the new "Digital Credit Capital Framework," the company also established a one-billion-dollar repurchase program for its credit securities, with the stated goal of returning STRC toward its $100 par value. The annualized STRC dividend remains at 12 percent.
The sales come against a weak financial backdrop. For the second quarter of 2026, Strategy reported a net loss of $8.22 billion, compared with a profit of $10.02 billion in the year-earlier quarter. The loss was driven almost entirely by $8.32 billion in unrealized paper losses on Bitcoin holdings, as the Bitcoin price ended the quarter more than 40 percent below its year-earlier level. The operating software business remained stable but small, with revenue of $122.4 million, up 6.9 percent year over year. CFO Andrew Kang pointed to 18 months of uninterrupted dividend payments and a USD reserve that he said covers obligations for more than two years. Saylor said he wants to establish "Digital Credit as a new asset class" during a period of muted Bitcoin sentiment.
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