Strategy (formerly MicroStrategy), the largest publicly traded corporate holder of Bitcoin, disclosed in its latest SEC filing that it sold 1,638 BTC for approximately $104.7 million during the week ending August 2, 2026, at an average price of $63,957 per coin. The same week, the company issued 3,011,361 MSTR shares through its at-the-market (ATM) program, generating $290.6 million in net proceeds. Strategy reported no Bitcoin purchases during the period.

The company allocated approximately $250 million to its US-dollar reserve and spent roughly $81.2 million repurchasing STRC preferred shares. As of August 2, Strategy held 842,138 BTC, meaning approximately 99.8% of its Bitcoin reserve remained intact after the sale. The sale represented the first documented instance of Strategy actively selling Bitcoin from its treasury reserve to fund operations, a notable departure from the accumulation-only approach the company had followed since it began purchasing BTC as a primary reserve asset in 2020.

Reserve Position and Cost Basis

In addition to its Bitcoin holdings, Strategy reported:

• $4 billion in its US-dollar reserve.
• 2.3 years of estimated coverage for preferred dividends and debt interest obligations.

Strategy's reported average acquisition cost across its portfolio was approximately $75,419 per Bitcoin. The latest sale price of $63,957 represented roughly a 15% discount to that portfolio-wide average. However, this figure does not establish the accounting or tax outcome of the sale. The filing does not specify which Bitcoin purchase lots were sold, and individual lots may have had acquisition prices above or below the reported average.

Although the sale removed only about 0.19% of Strategy's total reserve, it marked a notable shift in the company's approach. Bitcoin holdings, previously held as a static treasury asset, can now be monetized to meet corporate funding requirements.

STRC Repurchase Below Stated Value

Strategy's Bitcoin monetization program permits BTC sales to fund preferred dividends, debt interest, cash reserves, and other capital-management activities. The company's preferred securities require regular cash payments, while Bitcoin itself generates no income. Strategy must therefore meet these obligations through its software business operations, existing cash, securities issuance, or Bitcoin sales.

STRC has been trading below its $100 per share stated value. Strategy repurchased 912,143 STRC shares for approximately $81.2 million, paying an average of about $89 per share. At the $100 stated value, the repurchased block represented approximately $91.2 million, meaning Strategy retired it for roughly $10 million less than face value.

The repurchased shares also carried dividend obligations. At the 12% annual rate applied to STRC's $100 stated value, the block represented approximately $10.9 million in annual dividend payments, assuming the rate remained unchanged. The direct financial effect is fewer STRC shares outstanding and reduced future dividend obligations. The enlarged cash reserve also extends Strategy's runway for meeting remaining obligations before requiring additional capital raises or further Bitcoin sales.

MSTR Share Issuance and BTC Yield Decline

Issuing more than three million MSTR shares increased the company's cash position but also expanded its diluted common-share count. Many investors hold MSTR as a proxy for indirect exposure to Strategy's Bitcoin reserves. When the diluted share count rises while Bitcoin holdings remain flat or decline, each share represents a proportionally smaller claim on the company's BTC.

Strategy tracks this relationship through a proprietary metric called BTC Yield. Despite its name, BTC Yield is not a dividend, cash return, or measure of MSTR's stock performance. It measures the change in Bitcoin holdings relative to the diluted common-share count.

Strategy reported a year-to-date BTC Yield of 13.3% as of May 25, 2026. The latest disclosed figure stood at 3.5%, representing a relative decline of approximately 74% between the two readings. This does not indicate that MSTR shareholders lost 74% or any specific cash amount. Rather, it reflects that the earlier growth in Bitcoin per diluted share slowed sharply as Strategy issued additional common stock, reduced the pace of BTC accumulation, and subsequently sold part of its reserve.

Peter Schiff's Criticism

Economist Peter Schiff criticized the transactions on X (Twitter), arguing that Strategy was issuing common shares and selling Bitcoin to sustain a preferred security with substantial dividend obligations. He characterized the company as continuing to "sacrifice common shareholders to bail out preferred shareholders" and stated: "STRC is now an albatross around MSTR's neck."

Schiff pointed to the decline in BTC Yield as evidence that common shareholders are receiving reduced Bitcoin exposure as Strategy directs capital toward STRC-related obligations.

The STRC repurchase carries a measurable benefit in removing approximately $10.9 million in annual dividend obligations at the current rate. The cost is equally visible: Strategy issued additional MSTR shares and concluded the week holding fewer Bitcoin. The filing alone cannot determine whether the dividend savings will ultimately compensate common shareholders for the dilution and reduced BTC exposure, as that outcome will depend on future STRC repurchases, share issuance, and Bitcoin activity over subsequent periods.

Strategic Implications

Strategy remains overwhelmingly exposed to Bitcoin, but its reserve now serves a dual function. It continues to act as the company's primary treasury asset while also serving as a source of liquidity that can be monetized to meet cash obligations or support other elements of its capital structure. This dual-function model is shared by other firms pursuing Bitcoin treasury strategies, though Strategy's holdings remain an order of magnitude larger than any other public company's reserve.

The latest transactions deployed three distinct funding mechanisms — Bitcoin sales, common-stock issuance, and existing cash reserves. The combined proceeds were directed toward increasing liquidity and retiring discounted preferred shares rather than expanding BTC holdings. Future filings will clarify whether this represents a limited adjustment or an emerging pattern. The most informative metrics to monitor will be Bitcoin held per diluted MSTR share, cash available for dividend and interest payments, and the remaining volume of preferred stock carrying regular payment obligations.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Bitcoin holdings, preferred-stock repurchases, share issuance, and proprietary performance metrics do not guarantee future returns.

Methodology: This article draws on Strategy's Form 8-K covering activity through August 2, 2026, the company's official Bitcoin monetization and capital-management disclosures, Michael Saylor's public update, and Peter Schiff's public response. Calculations regarding the proportion of Bitcoin sold, the difference from Strategy's average acquisition cost, the discount to STRC's stated value, and estimated avoided STRC dividends are derived from figures disclosed by the company.