Michael Saylor’s Strategy is Offloading Bitcoin Again
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Strategy Inc. (Nasdaq: MSTR) offloaded 1,638 Bitcoin between July 27 and August 2. That emerges from an 8-K filing with the US Securities and Exchange Commission that the company submitted on Monday. The average selling price was $63,957 per Bitcoin, generating proceeds of roughly $104.7 million. It is the second-largest sale of the year.
The holdings of the world’s largest institutional Bitcoin holder thus drop to 842,138 BTC. Those coins were acquired at a total cost of about $63.5 billion, which corresponds to an average purchase price of roughly $75,400. At the current price of around $62,400, the company is therefore sitting on paper losses of just under $11 billion. The stack still amounts to about four percent of all 21 million Bitcoin that will ever exist.
From “we will never sell” to a sales program
The sale stands in stark contrast to years of messaging from founder and Executive Chairman Michael Saylor. He had repeatedly stressed that there was no exit strategy for Strategy’s Bitcoin holdings and that the company would never sell — a position that became the core of the first “Bitcoin Treasury Company” brand and inspired numerous imitators worldwide.
In practice, Strategy now sells regularly. In early June, the company parted with 32 Bitcoin — the first documented disposal since a tax-motivated transaction in 2022. On July 6, another 3,588 Bitcoin followed for around $216 million, and now a further 1,638. The sales are no longer an exception but institutionalized: under the “BTC Monetization Program” introduced in the spring, the company is now permitted to sell Bitcoin worth up to five billion dollars.
The money flows to preferred shareholders
The reason for the sales lies in the financing structure. Strategy has funded its Bitcoin portfolio for years through convertible bonds and several series of preferred stock — and those instruments cost money on an ongoing basis. According to the filing, roughly $52.4 million of the latest proceeds went toward dividend payments on the STRC preferred stock, with another $52.3 million used to repurchase that same stock.
In parallel, Strategy sold 3,011,361 MSTR common shares for around $290.6 million during the same period. Of that, $250 million flowed into the USD reserve, which thereby grows to four billion dollars and is earmarked exclusively for dividends and interest payments. Under the new “Digital Credit Capital Framework,” the company has also set up a one-billion-dollar repurchase program for its credit securities. The stated goal: STRC should trade back toward its par value of $100. The annualized dividend on STRC remains at twelve percent.
$8.2 billion quarterly loss
The sales come at a difficult time. For the second quarter of 2026, Strategy reported a net loss of $8.22 billion last week — after a profit of $10.02 billion in the year-earlier quarter. Responsible for this are almost exclusively unrealized paper losses on the Bitcoin holdings amounting to $8.32 billion. At the end of the quarter, the Bitcoin price was more than 40 percent below its year-earlier level.
The operating software business, the company’s historic core, remains stable by contrast — but small: revenue of $122.4 million represents an increase of 6.9 percent over the year-earlier quarter.
CFO Andrew Kang points to 18 months of uninterrupted dividend payments and a USD reserve that he says covers obligations for more than two years. Saylor himself speaks of wanting to establish “Digital Credit as a new asset class” during a phase of muted Bitcoin sentiment.
