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 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. 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://t.co/t7bGZJ8Q3o
— Michael Saylor (@saylor) August 3, 2026
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 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 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, 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, 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.
