Strategy Sells 1,638 Bitcoin, Lifts USD Reserve to $4B

Strategy Sold 1,638 Bitcoin for $104.7M

Strategy reported the sales occurred from July 27 through August 2. The $104.73 million aggregate sale price works out to $63,957 per Bitcoin, net of fees and expenses, the filing said.

After the transactions, Strategy reported 842,138 BTC with an aggregate purchase price of $63.51 billion. That is lower than the 843,775 BTC it reported as of July 26 in its second-quarter release, which included a $3.75 billion USD Reserve and said Bitcoin holdings had grown 25% year to date at that point.

The timing is notable because the company had only recently formalized a capital framework that pairs a board-approved USD Reserve policy with a BTC monetization program. In its June framework announcement, Strategy said monetization could help fund the reserve, dividends, interest and eligible buybacks.

That approach distinguishes the filing from Strategy’s long-running accumulation disclosures. The company did not say the sale changed its long-term Bitcoin target, but it did allocate all of the stated proceeds to obligations connected to its preferred securities rather than to a new Bitcoin purchase.

STRC Buybacks Reached $81.2M in One Week

The same filing says Strategy repurchased 912,143 shares of its Variable Rate Series A Perpetual Stretch Preferred Stock, known as STRC, for $81.2 million between July 27 and August 2. Of that total, $52.3 million came from Bitcoin-sale proceeds and $28.9 million came from MSTR common-stock sales.

Strategy also reported selling 3,011,361 shares of MSTR through its at-the-market program for $290.6 million in net proceeds. It said $250 million of that money increased the USD Reserve, $28.9 million funded STRC repurchases and $11.7 million was added to cash.

The buyback was larger than the $25 million STRC repurchase disclosed a week earlier in the company’s quarterly results. Strategy’s July 27 policy announcement said it intends to scale purchases according to STRC’s price and liquidity when the security trades below its $100 stated amount.

For holders of MSTR and the preferred securities, the mechanics now matter alongside Bitcoin’s spot price. Selling common stock can build cash while a Bitcoin sale can pay dividends or support buybacks, but each route affects a different part of the company’s capital structure.

Strategy’s $4B Reserve Sets the Next Disclosure Test

The filing puts the USD Reserve at $4.0 billion, up $250 million from the amount Strategy reported on July 30. The company defines the reserve as liquidity reserved for preferred dividends and interest on outstanding debt, rather than as a measure of all cash and short-term investments.

Strategy had said the $3.75 billion reserve represented more than 2.1 years of coverage for its existing preferred-dividend and interest obligations. The August 3 filing did not provide a revised coverage calculation or say whether the increase changed the estimated period.

The company has framed the reserve and buybacks as tools to keep its digital-credit securities functioning while retaining long-term Bitcoin exposure. That framing is different from the pressure seen when Bitcoin fell below $62,000 in a liquidation cascade, but the price of Bitcoin still shapes the available value of Strategy’s core asset and the terms on which it can raise capital.

The Crypto Fear and Greed Index read 25, or Extreme Fear, on August 4. The broad Bitcoin sentiment gauge does not measure Strategy’s credit quality, but it captures the cautious market setting around its largest disclosed Bitcoin sale of the year.

The next signal will be Strategy’s subsequent weekly filing: whether it sells more Bitcoin, adds to the USD Reserve, repurchases further STRC shares or returns to net accumulation. The August 3 disclosure gives a clear baseline, but it does not set a schedule for future sales or buybacks.