--- title: "Strategy Sells 1,638 Bitcoin to Fuel Massive STRC Buyback" date: 2026-08-03 author: "Kathleen Kinder" featured_image: "https://coinlaw.io/wp-content/uploads/2026/08/strategy-sells-1-638-bitcoin.jpg" categories: - name: "Cryptocurrency" url: "/crypto.md" tags: - name: "News" url: "/tag/news.md" --- # Strategy Sells 1,638 Bitcoin to Fuel Massive STRC Buyback Strategy Inc (formerly MicroStrategy) disclosed in an SEC filing on August 3, 2026 that it sold 1,638 Bitcoin and repurchased $81.2 million of its STRC preferred stock, lifting its USD Reserve to $4.0 billion. ## Key Takeaways - Strategy sold 1,638 Bitcoin at an average price of $63,957, below its $75,419 average buy-in cost. - The company directed $52.4 million of the sale proceeds to preferred dividends and $52.3 million to STRC buybacks. - Strategy repurchased 912,143 shares of STRC preferred stock for $81.2 million, and lifted its USD Reserve to $4.0 billion. - Bitcoin holdings now stand at 842,138 BTC, following the sale disclosed in the same filing. - MSTR common stock trades near $92, down roughly 40% since the start of the year. ## What Happened? Strategy Inc filed the disclosure as a Form 8-K with the SEC, covering activity for the week of July 27 through August 2, 2026, according to Strategy’s own filing. The [SEC filing](https://www.sec.gov/Archives/edgar/data/1050446/000119312526329565/mstr-20260803.htm) shows the company sold **3,011,361 MSTR shares** through its at-the-market program, generating **$290.6 million** in net proceeds. Of that total, Strategy allocated **$250 million** to its USD Reserve, **$28.9 million** to STRC repurchases, and **$11.7 million** to cash. Thomas C. Chow, Executive Vice President & General Counsel, signed the filing. > Strategy increased its USD Reserve by $250M and repurchased $81M of [$STRC](https://x.com/search?q=%24STRC&src=ctag&ref_src=twsrc%5Etfw). This increased USD Duration by 57 days to 2.3 years and tightened STRC’s BTC Credit by 5 bps. As of 8/2/26, we hold ₿842,138 in our BTC Reserve and $4.0B in our USD Reserve. [$MSTR](https://x.com/search?q=%24MSTR&src=ctag&ref_src=twsrc%5Etfw) > > — Michael Saylor (@saylor) [August 3, 2026](https://x.com/saylor/status/2084248751925776403?ref_src=twsrc%5Etfw) ## Selling Bitcoin at a Loss to Fund the Buyback Strategy sold the **1,638 BTC** at an average price of **$63,957** per coin, well under its aggregate average purchase price of **$75,419** per coin across the full position. That gap works out to a realized loss of roughly **$18.8 million** on the coins sold to fund the same dividend and buyback. The **$81.2 million** STRC repurchase covered **912,143 shares**. That price works out to roughly **$89** per share, close to where STRC trades around **$90**, below its **$100** par value. ## A Break From the Buy and Hold Era [Strategy](https://coinlaw.io/microstrategy-statistics/) has not purchased Bitcoin since June 22, 2026, when it added **520 coins**. Its most recent prior sale came in early July, when it sold **2,225 BTC**, making the latest tranche the second consecutive month Strategy has sold rather than bought. That six-week pause lines up with Strategy’s own prior weekly disclosure, which tracked the same accumulation halt as it developed. Strategy built its position on a buy and hold thesis under Executive Chairman **Michael Saylor**, so two months of net selling is a real shift in cadence, one that also lands on holders tracked in [Retail investing data](https://coinlaw.io/retail-investing-statistics/) who bought MSTR as a Bitcoin proxy, not an income play. ## Implications for Strategy’s Capital Structure STRC pays a **12.00%** annualized dividend in semi-monthly installments of **$0.50 per share**, and the filing describes the expected tax treatment as non-taxable returns of capital to the extent of shareholder’s tax basis. **$893.8 million** remains available under the **[Digital Credit Securities Repurchase Program](https://coinlaw.io/strategy-sells-3588-btc-digital-credit-dividends/)**, alongside a separate **$1.0 billion** authorized for MSTR common stock repurchases. Both sit mostly untapped, so the dividend program can run for months regardless of Bitcoin’s price. That income-first structure serves a different buyer than the crypto user demographics built around capital gains. ## CoinLaw’s Takeaway This filing reads as a company managing two obligations at once: a preferred stock dividend it must fund every two weeks, and a Bitcoin position it no longer treats as untouchable. Selling coins below cost to grow the **$4.0 billion USD Reserve** and cover that dividend suggests Strategy now treats its Bitcoin as a funding source of last resort, not just a balance-sheet trophy. None of this points to where [Bitcoin’s price goes next](https://coinlaw.io/bitcoin-statistics/), and nothing here should be read as investment guidance. What it does show is a shift in sequencing: for six weeks running, Strategy has raised cash through stock sales, funded a preferred dividend, and sold Bitcoin to cover the gap, instead of adding to its position. A quiet month for new coins now looks less like patience and more like a company prioritizing its preferred shareholders’ cash payouts over the accumulation thesis that built its name.