Strategy sold 1,638 BTC for about $105 million in a second straight week of sales, raised $290 million via shares, and lifted its dollar reserve to $4 billion for preferred obligations
Strategy disclosed another weekly Bitcoin disposal, converting 1,638 BTC into roughly $104.73 million and pairing the move with a large common-share issuance that pushed its U.S. dollar reserve to $4 billion. The company reported the Bitcoin sale in an 8-K filed with the U.S. Securities and Exchange Commission on August 3 for the week ended August 2, marking a second consecutive week of coin sales after years of accumulation.
Coins changed hands at an average net price of $63,957. Strategy said the sale left it with 842,138 BTC, down from a June 2026 peak of 847,363 BTC. The firm originally built its stack at an average cost near $75,419 per coin, or about $63.51 billion in total acquisition cost, so recent sales sit below that historical average.
Sale Proceeds and STRC
Management split the Bitcoin proceeds almost evenly. About $52.4 million went to preferred-stock dividends, while $52.3 million funded repurchases of STRC preferred shares. The full STRC buyback for the period totaled $81.2 million and covered 912,143 shares, with the balance of buyback cash coming from common equity sales. The transaction was the second repurchase under a $1 billion STRC program launched June 29; after the latest activity, roughly $893.8 million of authorization remained.
Strategy said the trades narrowed STRC's Bitcoin credit spread by five basis points and lengthened USD duration by 57 days to about 2.3 years. The company kept STRC's annual dividend rate at 12 percent, paid in semi-monthly installments of $0.50 per share, and indicated it would not recommend a cut until the preferred stock trades consistently near its $100 par value.
Share Issuance and Cash Buffer
Alongside the Bitcoin sale, Strategy issued 3,011,361 MSTR common shares for $290.6 million. Of that amount, $250 million went straight into the dollar reserve, bringing the cash stockpile to $4 billion. The company sizes that reserve to cover at least twelve months of preferred dividend and interest obligations, which it estimates near $1.76 billion a year. Building a multi-billion-dollar fiat buffer while still holding a large Bitcoin treasury reflects a shift from pure accumulation toward liquidity management for fixed obligations.
Corporate digital-asset strategies continue to diversify beyond single-asset concentration, a pattern also visible when gold-backed tokens secured new certifications aimed at institutional and faith-based investors. For Strategy, the immediate priority is funding preferred distributions and supporting STRC without relying solely on fresh Bitcoin purchases or market rallies.
Capital Framework Limits
Strategy first sold Bitcoin at the end of May 2026, ending a no-sale stance in place since December 2022. In June 2026 it adopted a formal capital framework allowing disposals of up to $1.25 billion in BTC to fund dividends or refill the reserve. Combined with about $216 million sold in July, the company has now used roughly $321 million of that capacity. On August 3, Bitcoin traded near $62,600 while MSTR shares were indicated about 1.9 percent lower in premarket trading, according to market data referenced with the filing.
U.S. investors watching MicroStrategy-linked equity and preferred instruments should note that preferred dividends and buybacks are now partly funded by Bitcoin sales and equity issuance rather than only by operating cash flow or new BTC accumulation. That mix can stabilize near-term cash coverage while reducing the absolute Bitcoin stack and crystallizing gains or losses relative to the higher historical average cost basis.
A corporate Bitcoin treasury that also maintains a large dollar reserve is effectively running a dual-balance-sheet model: long-duration digital assets on one side and short-duration fiat liquidity on the other. The dollar sleeve is meant to service predictable preferred coupons and interest without forced coin sales in every market dip, yet the formal $1.25 billion disposal cap still allows management to monetize BTC when spreads, duration, or dividend coverage warrant it. Holders of common and preferred shares face different exposures-common equity remains leveraged to Bitcoin price and equity issuance dilution, while preferred holders depend on the firm's ability to keep the cash reserve and credit metrics intact. Because preferred rates, par trading levels, and remaining buyback authorization all interact, changes in Bitcoin volatility or equity market access can quickly alter how much of the disposal capacity is used next.
