Strategy, the publicly traded software company formerly known as MicroStrategy, sold 1,638 BTC for approximately USD 104.73 million in the week ending August 2, 2026. The move marks the latest step under the company's newly adopted Digital Credit Capital Framework, which permits management to systematically sell Bitcoin, repurchase its own securities, and actively manage liquidity. The approach represents a notable reversal for a company that built its identity around continuous Bitcoin accumulation after adopting the cryptocurrency as its primary treasury reserve asset in August 2020, originally framing the strategy as a hedge against fiat-currency debasement.

The transaction was disclosed in an 8-K filing with the U.S. Securities and Exchange Commission. Following the sale, Strategy retains 842,138 BTC valued at roughly USD 52.6 billion, maintaining its position as the largest publicly listed Bitcoin holder.

Bitcoin Sold Below Cost Basis

Strategy achieved an average price of USD 63,957 per Bitcoin on the 1,638 BTC sold. The company had not sold any Bitcoin for approximately four weeks prior. The average sale price sits near the prevailing market level of around USD 62,500, where Bitcoin settled over the weekend.

The sold tranche represents approximately 0.2% of Strategy's total holdings. The company originally paid roughly USD 63.5 billion for its remaining Bitcoin stack, at an average cost of USD 75,419 per BTC. With a current market value of about USD 52.6 billion, the position carries an unrealized book loss of roughly USD 11 billion, or approximately 17%. Each sale below cost therefore realizes a portion of that loss.

Under the new framework, Bitcoin's function as a liquid asset is emphasized alongside its role as a treasury reserve. The proceeds from sales increase freely available funds and provide management with flexibility for buybacks. Until mid-2026, Bitcoin sales of this magnitude were exceptional; since late June, they have become part of the regular toolkit.

Equity Issuance and STRC Buyback

In parallel with the Bitcoin sale, Strategy raised capital through its at-the-market (ATM) equity program. The company placed 3.01 million new MSTR common shares, generating approximately USD 290.6 million. An ATM program allows a company to issue shares continuously at market prices rather than through a single placement. While the issuance dilutes existing shareholders, it provides immediate capital.

Of the proceeds, USD 250 million went into the company's USD reserve cushion, which increased to USD 4 billion. The remainder was directed toward repurchasing Strategy's own preferred shares, known as STRC securities.

Since announcing the STRC buyback program in late July, Strategy has repurchased 912,143 STRC securities for approximately USD 81.2 million, at an average price of USD 89.02 per share. This represents a discount of roughly 11% to the par value of USD 100. Preferred shares carry a fixed dividend and rank ahead of common stock in insolvency proceedings but do not confer voting rights. When STRC trades below par, each repurchase retires future dividend obligations at less than nominal value, which management views as an attractive use of capital.

The dividend burden is significant. Strategy raised the annual dividend rate on STRC securities to 12% effective July 1, 2026. The company intends to maintain that rate until the stock trades consistently near par value.

Digital Credit Capital Framework

The board established the Digital Credit Capital Framework in late June 2026. It authorizes up to USD 1 billion each for two buyback tracks — preferred shares and MSTR common stock — totaling up to USD 2 billion with no fixed expiration date. The framework also established a program to monetize Bitcoin holdings.

CEO Phong Le characterized the overhaul as a fundamental shift in the company's approach. Rather than focusing primarily on raising capital, Strategy now actively manages its capital structure through a combination of issuance and buybacks, with the mix adjusting to market conditions. Buybacks and issuance now run concurrently rather than sequentially, and the pure Bitcoin accumulation model no longer holds exclusive priority. Bitcoin functions as a manageable balance-sheet variable alongside equity and debt.

Executive Chairman Michael Saylor framed the framework in terms of balance sheet quality:

"The framework is intended to strengthen Strategy's credit profile, while Bitcoin remains the primary treasury reserve." — Michael Saylor, Executive Chairman, Strategy

Management demonstrated its commitment to the new approach shortly after the framework's adoption. In late June and early July 2026, Strategy sold Bitcoin worth approximately USD 216 million — the largest known single sale since the accumulation strategy began in 2020 and only the third sale ever. The renewed sale in early August confirms that Bitcoin sales are now an ongoing practice rather than a one-time event.

Stock Performance and Quarterly Results

The equity market has responded cautiously to the strategic shift. Following the 8-K filing, MSTR traded approximately 1% to 2% lower pre-market and most recently stood at around USD 93. Over twelve months, the stock has declined roughly 75%.

The 52-week range illustrates the magnitude of the decline. MSTR peaked at USD 414.36 in August 2025 before falling to USD 81.81 by the end of June 2026 — an approximately 80% loss in under eleven months. The current price sits roughly 14% above that low.

The stock pressure coincides with a difficult quarter. For the second quarter of 2026, Strategy reported a net loss of USD 8.22 billion, driven by fair value accounting for digital assets, which carries price declines directly into the income statement. Under accounting standards adopted for crypto assets (ASU 2023-08), companies must mark Bitcoin to market value each reporting period, meaning that price swings — both up and down — flow directly through earnings. The loss is a non-cash book effect. In the year-earlier quarter, the same accounting mechanism produced a profit of USD 10.02 billion. During the quarter, Bitcoin holdings had climbed 11% to a peak of 846,000 BTC before the selling program commenced.

Strategy remains the largest corporate holder of Bitcoin despite the recent reductions. Its approach has been closely watched by other public companies that have added Bitcoin to their treasuries, and the framework signals that even the most committed corporate holder is willing to treat the asset as an actively managed position rather than a permanent store of value.