Strategy (MSTR) Sells 1,638 Bitcoin, Boosts USD Reserves to $4 Billion Amid Ongoing Stock Sales

Strategy (MSTR) Sells 1,638 Bitcoin, Bolsters USD Reserves Amid Market Turmoil

In a significant move last week, Strategy (MSTR) sold 1,638 Bitcoin (BTC), generating approximately $104.73 million, as detailed in a Form 8-K filing with the Securities and Exchange Commission (SEC) on Monday. This strategic decision comes on the heels of the company’s ongoing sales of its Class A Common Stock, further reshaping its financial landscape.

The company allocated $52.4 million from the Bitcoin sale proceeds to cover preferred stock dividend payments, while another $52.3 million was directed towards repurchasing shares of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) as part of its previously announced Digital Credit Securities Repurchase Program.

Despite the recent sale, Strategy retains a substantial holding of 842,138 BTC, acquired at an aggregate purchase price of $63.51 billion, with an average purchase price of $75,419 per Bitcoin. This robust position underscores the company’s commitment to its Bitcoin strategy, even amid market fluctuations.

In addition to the Bitcoin sale, Strategy also sold approximately 3.01 million MSTR shares, generating net proceeds of $290.6 million. Of this amount, $250 million was allocated to bolster its USD reserves, which now stand at approximately $4 billion. This reserve is crucial for supporting dividend payments on preferred stock and meeting interest obligations on outstanding debt.

The company still has about $893.8 million remaining under its preferred stock repurchase program and $1 billion available under its MSTR common stock repurchase program, indicating a proactive approach to managing its capital structure.

These transactions come shortly after Strategy reported a staggering $8.33 billion operating loss for the second quarter of 2026, primarily driven by an $8.32 billion unrealized loss on its Bitcoin holdings as the cryptocurrency market faced significant declines during the period. The company also reported an $8.22 billion net loss and held 843,775 BTC as of July 26. Despite these challenges, Strategy noted a 4.5% BTC yield year-to-date and a gain of 29,997 BTC.

Founder and chairman Michael Saylor has faced criticism following the recent Bitcoin sales, particularly as he had previously championed the “HODL” (hold on for dear life) narrative since the company transitioned to a Bitcoin treasury model. In response to the backlash, Saylor has defended his position, emphasizing the need for liquidity and strategic financial management.

As of Monday, MSTR shares traded at $94.8, reflecting a 1.6% increase, signaling a potential recovery in investor sentiment amid the company’s ongoing efforts to navigate the volatile cryptocurrency landscape.

With a clear focus on maintaining liquidity and supporting its financial obligations, Strategy continues to adapt its approach in a rapidly changing market, leaving investors and analysts keenly watching its next moves.