Strategy Sells $105M in Bitcoin as Dollar Reserve Hits $4B
Strategy sold 1,638 BTC for $104.7 million, using proceeds to fund dividends and buy back STRC shares. Its Bitcoin holdings now stand at 842,138 BTC, with a USD reserve reaching $4 billion. The firm has not purchased Bitcoin since June, reflecting a shift in capital strategy.
Quick Take
Strategy sold 1,638 BTC for $104.7M at $63,957 each.
Proceeds funded preferred dividends and an $81M STRC share repurchase.
USD reserve increased to $4B; firm hasn’t bought BTC since June.
Sale aligns with new capital framework allowing up to $1.25B disposals.
Market Impact Analysis
BearishA major Bitcoin holder selling could signal reduced confidence, potentially putting short-term downward pressure on BTC price, though the amount is minor relative to overall volume.
Speculation Analysis
Key Takeaways
- Strategy sold 1,638 Bitcoin for $104.7 million at an average price of $63,957, cutting its holdings to 842,138 BTC.
- $52.4 million funded preferred stock dividends, and $81.2 million repurchased STRC shares, strengthening its capital structure.
- The sale boosted the firm’s USD reserve to $4 billion, extending its USD duration and tightening credit spreads.
- This move is part of a new capital framework that permits up to $1.25 billion in Bitcoin disposals.
What Happened
Strategy sold 1,638 Bitcoin for $104.7 million in the week ending August 2. The company disclosed the sale in an SEC filing, noting that half the proceeds went to preferred stock dividends and the rest toward repurchasing STRC shares. This is Strategy’s third Bitcoin sale in recent months, following a shift in its capital strategy. The sale reduces its Bitcoin stack to 842,138 BTC and marks a continued pause in Bitcoin purchases since June. The move extends the firm’s USD duration and tightens STRC’s Bitcoin credit spread, reflecting a deliberate pivot to bolster its dollar reserves and reward shareholders.
The Numbers
Strategy sold the Bitcoin at an average price of $63,957, net of fees. Its aggregate cost basis for Bitcoin is $75,419 per coin, meaning it sold below its average purchase price. The firm repurchased $81.2 million of STRC shares, or 912,143 shares, using $52.3 million from the sale and the rest from common stock sales. The USD reserve now stands at $4.0 billion, increased by $250 million. Since June, Strategy has not acquired any new Bitcoin, focusing instead on dollar accumulation.
Why It Happened
Strategy’s new capital framework, introduced in June, allows for up to $1.25 billion in Bitcoin disposals to manage its balance sheet. The firm faces $1.76 billion in annual dividend obligations on its preferred stock, and selling Bitcoin helps cover those payments without diluting common equity. Additionally, the buyback of STRC shares reduces floating supply, supporting the stock price and improving per-share metrics. By building a larger USD reserve, Strategy aims to extend its financial runway and maintain a 12% annual dividend rate on its preferred shares.
Broader Impact
The sale might signal that major corporate Bitcoin holders are willing to offload to meet liability needs, potentially influencing market sentiment. While the amount is small relative to daily trading volume, it underscores a more active treasury management approach that other firms may follow. Strategy’s emphasis on “net Bitcoin per share” highlights a shift where Bitcoin serves as a strategic reserve asset that can be mobilized, not just held indefinitely.
What to Watch Next
- Monitor whether Strategy resumes Bitcoin purchases or continues selling under its $1.25 billion disposal authorization (with $321 million used so far).
- Watch STRC share price and dividend stability, as future Bitcoin sales may be used to sustain the 12% yield.
- Track any comments from CEO Michael Saylor, as his long-standing “never sell” stance has evolved to accommodate the new framework.
This article is for informational purposes only and does not constitute financial advice.
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