Strategy Inc., the Bitcoin treasury company tied to Michael Saylor, sold 1,638 BTC in the week from July 27 to August 2, 2026, according to an 8-K filing submitted to the SEC on August 3. The transaction generated approximately $104.73 million, as the company began using Bitcoin to fund preferred stock dividends and buy back STRC under its new capital management program.
After years of committing to a BTC accumulation strategy, this new move shows Strategy is expanding how it uses Bitcoin within its capital structure. BTC remains the core reserve asset, but the company now also has a mechanism to sell a portion of its holdings to support liquidity, preferred stock dividends, and buyback programs when needed.
Form 8-K filing. Source: SEC
Strategy Sells BTC to Fund Dividends and STRC Buybacks
According to the SEC filing, Strategy sold 1,638 BTC for total net proceeds of $104.73 million. Of this amount, $52.4 million was used to pay preferred stock dividends, and $52.3 million was used to repurchase STRC Stock under the Digital Credit Securities Repurchase Program.
During the same period, Strategy bought back 912,143 STRC shares for a total purchase price of $81.2 million. STRC is the company’s Variable Rate Series A Perpetual Stretch Preferred Stock, part of the “Digital Credit” group issued by Strategy alongside MSTR common stock. Repurchasing STRC at a price below its $100 par value helps the company reduce future dividend obligations at a discount.
This BTC sale is part of the BTC Monetization Program announced by Strategy in late June, which allows the company to use a portion of its Bitcoin holdings to fund dividends, interest expenses, or securities repurchase programs when management deems it more suitable than other capital-raising options.
USD Reserve Expands Under New Capital Framework
Strategy’s USD Reserve increased to $4.0 billion as of August 2, including expected proceeds from unsettled ATM transactions. This figure is higher than the $3.75 billion announced by the company in its Q2 earnings report on July 30.
In the week from July 27 to August 2, Strategy also sold 3,011,361 MSTR shares through its at-the-market program, raising net proceeds of $290.6 million. The company allocated $250 million from this amount to increase the USD Reserve, $28.9 million to support STRC buybacks, and $11.7 million into its cash balance.
Strategy’s new framework places the USD Reserve at the center of its capital model. Under the policy announced on June 29, this reserve is used to support preferred stock dividends and interest expenses. The company aims to maintain a minimum reserve equivalent to 12 months of current dividend and interest obligations; any drop below that threshold requires board approval.
With this mechanism, Strategy is creating an additional cash buffer for its capital structure tied to Bitcoin and preferred stock. This is particularly important as the ability to pay regular dividends is a key factor for the company’s Digital Credit securities group.
Bitcoin Holdings Remain Massive Despite the Sale
Following the latest sale, Strategy still holds 842,138 BTC. The total purchase price of this Bitcoin position is $63.51 billion, equivalent to an average purchase price of $75,419 per BTC, inclusive of fees and related expenses.
The sale of 1,638 BTC accounts for only about 0.19% of Strategy’s total Bitcoin holdings. Therefore, in terms of scale, this transaction does not significantly alter the company’s Bitcoin treasury position. The notable takeaway lies in Strategy officially incorporating BTC sales into its capital management toolkit, rather than relying solely on issuing common stock or preferred stock to raise cash.
The Q2 financial context also highlighted balance sheet pressures for Strategy. The company reported a net loss of $8.22 billion in Q2 2026, equivalent to a diluted loss of $24.45 per share. The loss stemmed primarily from $8.32 billion in unrealized losses on digital assets as Bitcoin prices declined. Q2 revenue reached $122.4 million, up 6.9% year-over-year.
Bitcoin Trades Near $63,800 as Weekly Momentum Weakens
Bitcoin is currently trading around $63,800, down about 1.9% over the past 7 days. According to CoinGecko, BTC’s market capitalization stands at around $1.279 trillion, 24-hour trading volume reached approximately $23.50 billion, circulating supply is 20.065 million BTC, and total tracked Bitcoin treasury holdings stand at 1,903,654 BTC.
BTC price is fluctuating in the range of roughly $62,216–$66,920 on TradingView’s 4-hour chart. After a sharp drop in late July, Bitcoin recovered to the $63,700–$63,800 zone but has yet to reclaim the $65,000 mark.
BTC Price Chart (4H). Source: TradingView
Strategy selling BTC during a period of price weakness could add short-term psychological pressure, even though the sale volume is not large compared to broader market liquidity. However, the market reaction will likely depend more on whether investors view this as a one-off transaction or a sign that Strategy will continue using BTC as a liquidity source in upcoming periods.
What Investors Should Watch Next
What the market needs to monitor is whether Strategy continues selling BTC in upcoming periods. The BTC Monetization Program allows the company to sell Bitcoin to add up to an additional $1.25 billion to the USD Reserve, while also funding dividends, interest expenses, or securities buyback programs if appropriate. If BTC sales continue to appear in upcoming filings, the market may view this as a sign that BTC sales are becoming a more regular tool in the company’s capital management strategy.
Strategy management previously stated that the goal is to bring STRC to trade near the $99–$100 range over time. While STRC remains below par, the company has an incentive to buy back shares as it reduces future dividend obligations at a cost below face value.
Investors will also monitor the gap between Bitcoin’s market price and Strategy’s average purchase price. With an average purchase price of around $75,419 per BTC, BTC is still trading below the company’s cost basis, causing price volatility to continue having a major impact on accounting profits. Therefore, Strategy’s subsequent filings will be closely watched to see whether this sale is an isolated transaction or the beginning of a pattern of using BTC more frequently within its capital structure.
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Source: https://nftplazas.com/strategy-sells-1638-bitcoin-cash-reserve-plan/
