Strategy has reduced its Bitcoin reserve once again, selling 1,638 BTC for $104.7 million during the week ending August 2, according to a new SEC Form 8-K filing. The sale, executed at an average price of $63,957 per coin, lowered the company's Bitcoin holdings from 843,775 BTC to 842,138 BTC — a position it has maintained since early July. Strategy remains the largest publicly traded corporate holder of Bitcoin, and the sale price of $63,957 sits well below the company's cumulative average purchase price, meaning each coin sold was disposed of at a realized loss relative to cost basis.

Proceeds Directed Toward Dividends and Share Repurchases

Strategy allocated the proceeds roughly equally between dividend payments and share repurchases. The company directed $52.4 million toward dividends on its preferred shares and $52.3 million toward repurchasing STRC shares.

During the week, Strategy purchased 912,143 STRC shares for $81.2 million, with $28.9 million still remaining available for share purchases from common stock sales. This represents the company's second repurchase under a $1 billion share buyback program announced on June 29. After completing a prior $25 million repurchase transaction, Strategy has approximately $893.8 million remaining under the authorized program.

Following the latest transaction, Strategy's total cost basis for its Bitcoin holdings stands at $63.51 billion, equating to an average purchase price of $75,419 per BTC.

Sales Continue Under New Capital Framework

The most recent Bitcoin sale falls under a capital structure introduced in June that permits Strategy to sell up to $1.25 billion worth of Bitcoin, depending on financial conditions. Of that authorized ceiling, approximately $929 million remains available under the program's terms.

Strategy departed from its long-standing commitment to never sell Bitcoin in late May, when it sold 32 BTC to cover preferred stock dividends. That marked the company's first Bitcoin sale since December 2022, when it sold 704 BTC for tax purposes and subsequently purchased 810 BTC two days later. The pivot from accumulation to selective divestment marks a notable shift for a company whose corporate identity has been closely tied to its Bitcoin treasury strategy.

Since adopting the new framework, Strategy has sold approximately $321 million worth of Bitcoin, comprising $216 million in July and the most recent $104.7 million sale.

On July 6, 2026, Strategy stated on X:

Strategy has sold 3,588 $BTC for $216 million to fund dividends on our Digital Credit securities. As of 7/5/2026, we hodl ₿843,775 in our BTC Reserves and $2.55 billion in our USD Reserves.

— Strategy (@Strategy) July 6, 2026

Cash Reserve Expands as Bitcoin Holdings Contract

Strategy has not purchased any Bitcoin since June, instead focusing on growing its USD cash balance to meet its annual preferred dividend obligation of approximately $1.76 billion — a recurring liability that now appears to be the primary driver of the company's Bitcoin sales and equity issuance activity.

Last week, the company also liquidated 3,011,361 MSTR shares, generating $290.6 million. Of that amount, $250 million was used to increase its cash balance to approximately $4 billion.

According to Strategy, these financial maneuvers extended its average financing time — referred to as USD duration — to 2.3 years while reducing the credit spread on its STRC preferred stock by 5 basis points. The company confirmed it will continue paying a 12% annual dividend on STRC shares, equivalent to $0.50 per share.

On August 3, 2026, Strategy posted on X:

Strategy increased its USD Reserve by $250M and repurchased $81M of $STRC. This increased USD Duration by 57 days to 2.3 years and tightened STRC's BTC Credit by 5 bps. As of 8/2/26, we hold ₿842,138 in our BTC Reserve and $4.0B in our USD Reserve. $MSTR

— Strategy (@Strategy) August 3, 2026

Following the latest transaction, Strategy's Bitcoin reserve trails its all-time high of 847,363 BTC — reached in June — by 5,225 BTC, representing a decline of approximately 0.6%. Whether the company resumes purchasing Bitcoin will likely depend on its ability to meet preferred dividend obligations while maintaining its USD reserve target. Bitcoin was trading at $63,779 at the time of writing.