Strategy, the largest publicly traded corporate holder of Bitcoin, has opened the door to roughly $5 billion in potential Bitcoin sales under a balance-sheet program covering cash reserves, preferred dividends, debt interest, and securities repurchases.

The figure combines up to $1.25 billion for the USD reserve, approximately $1.76 billion in current annual dividend and interest obligations, and as much as $2 billion across common and preferred-stock repurchase programs. The BTC Monetization Program has no expiration date and does not require Strategy to sell any specific amount.

Bitcoin Sales Support Three Capital Uses

Strategy stated it "can and will sell BTC when advantageous" as the company transitions from one-way capital issuance toward active capital management. The shift marks a notable evolution in the company's financial strategy, which since 2020 has relied on debt and equity issuance to fund continuous Bitcoin accumulation with no sustained selling. Sales can replenish cash deployed for dividends and interest, or finance buybacks when management deems them more attractive than issuing additional MSTR or preferred shares.

The company's USD reserve reached $3.75 billion by July 26, providing more than 2.1 years of coverage at the current obligation rate. Strategy maintains a minimum target equal to one year of preferred dividends and debt interest, unless its board authorizes a lower balance.

Future capital raises will also be divided dynamically among Bitcoin purchases, cash reserves, debt reduction, and securities repurchases, rather than being deployed entirely into BTC. Strategy has not abandoned accumulation, but Bitcoin is now one of several possible destinations for newly raised capital.

Q2 Loss Accompanies $218M in Bitcoin Sales

The expanded program follows Strategy's $8.22 billion second-quarter net loss, driven by an $8.32 billion unrealized loss on its digital assets. Under fair-value accounting rules adopted in early 2025, Strategy must mark its Bitcoin holdings to market each quarter, meaning paper losses now flow directly through the income statement. As of July 26, Strategy held 843,775 BTC—roughly 4% of Bitcoin's total mined supply—acquired for $63.69 billion at an average price of $75,476.

Strategy sold 3,620 BTC for $218.4 million during 2026. The largest transaction involved a 3,588 BTC sale used to fund preferred distributions and replenish cash previously allocated for those payments.

Those coins carried a $418 million cost basis and generated approximately $216 million in proceeds, resulting in a $203 million realized loss. Strategy estimated that the transaction could produce a $59 million tax asset available to offset future capital gains.

Despite the sales, Strategy remained a substantial net buyer during the year, purchasing 174,895 BTC and selling 3,620 BTC for net acquisitions of 171,275 BTC.

STRC Buybacks Draw Shareholder Criticism

Strategy repurchased 288,930 STRC shares for $25 million at an average price of $86.53, leaving $975 million under its digital-credit repurchase authorization. Its separate $1 billion MSTR program had not completed any common-stock repurchases by July 26.

Peter Schiff criticized Strategy's objective of returning STRC toward its $99 to $100 stated-value range, arguing that prioritizing the preferred security could disadvantage MSTR shareholders. Strategy maintains that buying STRC below par reduces future dividend obligations and can improve net Bitcoin exposure per common share.

MSTR finished Friday at $93.28 after declining 4.6% and touching an intraday low of $89.30. Strategy's remaining repurchase capacity stood at $975 million for digital-credit securities and $1 billion for common stock.