Strategy (MSTR) Sells 1,690 Bitcoin for $108.6M to Buy Back STRC Preferred Stock

Strategy Inc (NASDAQ: MSTR) sold 1,690 Bitcoin between August 3 and August 9, 2026, generating $108.6 million in net proceeds that were directed entirely toward repurchasing shares of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC). Separately, the company raised $653.1 million by selling 6,585,682 shares of Class A common stock through its at-the-market offering program during the same period.

Transaction Details

• Bitcoin sold: 1,690 BTC at an average price of $64,262 per coin, generating $108.6 million net of fees and expenses
• STRC repurchased: 1,152,020 shares at an aggregate purchase price of $108.6 million under the Digital Credit Securities Repurchase Program announced June 29, 2026
• Common stock sold: 6,585,682 MSTR shares generating $653.1 million in net proceeds; $650.0 million was directed to the USD Reserve and $3.1 million added to Strategy's cash balance
• USD Reserve balance: $4.65 billion as of August 9, 2026, inclusive of proceeds from shares sold but not yet settled
• Remaining repurchase capacity: $785.2 million remains available under the Digital Credit Securities Repurchase Program for preferred stock buybacks

Why It Matters

The Bitcoin sale represents a deliberate use of the company's cryptocurrency treasury to support its preferred stock capital structure rather than to accumulate additional BTC. Strategy's total Bitcoin holdings stood at 840,447 BTC as of August 9, 2026, acquired at an aggregate average price of $75,385 per coin, meaning the coins sold were liquidated at a price below the portfolio's average cost basis. The proceeds flowed directly into STRC repurchases, a mechanism the company has framed as part of its broader "digital credit" framework.

The USD Reserve, now at $4.65 billion, is maintained specifically to support dividend payments on Strategy's preferred stock instruments and interest on outstanding debt. The common stock ATM program continues to operate with $22.04 billion in remaining capacity, reflecting a $21.0 billion increase announced on March 23, 2026. None of the preferred stock ATM programs, including STRF, STRC, STRK, or STRD, sold any shares during the period.

Wall Street View

Analyst sentiment on Strategy remains constructive, with the most recent consensus as of August 1, 2026, showing 6 Strong Buy and 17 Buy recommendations against 3 Hold ratings and no Sell or Strong Sell calls. Specific price targets were not available in the current data.

Investor Takeaway

The decision to sell Bitcoin below the portfolio's average cost of $75,385 to fund preferred stock repurchases indicates that Strategy is actively managing its liability side through asset liquidation when it sees relative value in buying back its own instruments. Shares fell -2.68% on Monday, August 10, 2026, while the S&P 500 declined 0.03%. For investors, the key structural question is whether continued BTC sales at prices below the portfolio average will, over time, erode the per-share Bitcoin exposure that underpins much of the MSTR investment thesis.