Full Breakdown
Strategy Inc. Shifts From Pure Bitcoin Accumulation to Cash-Reserve Building
8/4/2026, 11:55:04 AM
Core Event
Between July 27 and August 2 2026, Strategy Inc. sold 1,638 BTC for roughly $104.7 million and issued about 3.01 million shares of common stock, raising $290.6 million. The combined $395 million was allocated to repurchase its variable-rate preferred shares (STR C), fund preferred-stock dividends, and expand a U.S.–dollar reserve to $4 billion. No Bitcoin was purchased with the proceeds.
Background & Context
Strategy, formerly MicroStrategy, began buying Bitcoin in August 2020 and built the world’s largest corporate Bitcoin treasury, holding roughly 842,000 BTC (about 4 % of the total supply) at an average cost near $75,400 per coin. In June 2026 the company overhauled its financing model, giving management flexibility to sell Bitcoin, repurchase securities, and preserve liquidity. The recent transactions are the first large-scale disposals since the 2022 bear market and follow quarterly sales that began in late 2025.
Data & Statistics
- Bitcoin sold: 1,638 BTC (average $63,957 per coin, net of fees).
- Proceeds: $104.7 million, split almost evenly between preferred-stock dividends ($52.4 million) and STR C buybacks ($52.3 million).
- Preferred-stock repurchases: 912,143 STR C shares for $81.2 million; an additional $25 million repurchase of 288,930 shares earlier in the week.
- Common-stock issuance: 3.01 million MSTR shares, generating $290.6 million; $250 million placed into the cash reserve, $11.7 million retained as working capital.
- Cash reserve: Reached $4 billion, enough to cover roughly 27 months of preferred-dividend and debt-interest obligations.
- Remaining Bitcoin holdings: Approximately 842,138 BTC, valued at about $52 billion, creating an unrealized loss of roughly $10.9 billion versus the average cost basis.
- Preferred-stock status: STR C trades below its $100 par value; the company aims to restore parity by September 2026.
Official Statements & Responses
Executive Chairman Michael Saylor said the sales are a strategic choice and that the firm never adopted a “never-sell” policy. The BTC monetization plan, announced before the Q2 earnings release, is intended to fund liquidity rather than signal a shift away from Bitcoin conviction.
Conflicting Reports & Gaps
Sources differ on the exact number of Bitcoin still held after the sale. Bloomberg cites a post-sale holding of $56 billion (about 842,138 BTC), while other outlets report holdings of “over 200,000 BTC.” The discrepancy stems from differing reporting dates and whether the figure includes recent sales through early July 2026. No source provides a definitive, up-to-date count beyond the 842,138 BTC figure disclosed in the August 3 filing.
What’s Next
Strategy targets bringing STR C back to its $100 par value by September 2026, after which the preferred-stock financing channel would be fully restored. The company retains authorization to repurchase up to $1 billion of common shares and $1 billion of preferred shares, though none have been exercised since the recent round. Future Bitcoin purchases will depend on the ability to fund them without diluting common shareholders or eroding the cash reserve.
