Strategy sold another 1,638 Bitcoin last week, bringing in roughly $105 million at an average price of $64,000 per coin. The sale, disclosed Monday, marks the third discrete Bitcoin disposal in 2026 — and the third executed below the company's average acquisition cost of $75,419. The firm has now gone six consecutive weeks without buying any Bitcoin.
Where the money went
Proceeds from the sale, combined with $290.6 million raised through common stock issuance, funded $81.2 million in STRC preferred stock repurchases and added $250 million to Strategy's USD reserve. That reserve now sits at $4 billion — enough to cover roughly 2.3 years of preferred dividends and interest payments, according to the company's disclosures.
Strategy repurchased 912,143 STRC shares for $81.2 million. STRC closed July at $89.46, and the company confirmed it will hold the annual dividend rate at 12%. For buyers in the secondary market, the effective yield is roughly 13.4% due to the discount.
The cost of the preferred dividend strategy
Quarterly preferred dividend costs have ballooned from $49.1 million a year ago to $400.7 million. That surge is the main driver behind the company's decision to sell Bitcoin — a move explicitly authorized under the Digital Credit Capital Framework introduced in late June. The framework allows BTC sales to fund dividends, debt service, and repurchases.
Strategy reported a Q2 net loss of $8.22 billion, driven largely by unrealized Bitcoin impairments. The company holds 842,138 BTC at a total cost of $63.51 billion, and at current prices (near $63,500 per Arkham Research) sits on a paper loss of roughly $10.9 billion.
What the $4B reserve means
The $4 billion USD reserve gives Strategy a cushion, but it's not infinite. At the current quarterly dividend run rate of $400.7 million, the reserve covers about 10 quarters. That timeline assumes no additional sales or purchases — and no change in Bitcoin's price.
Michael Saylor has stated he has never sold his personal Bitcoin and clarified that Strategy as a public company may buy or sell BTC to manage capital. MSTR stock slipped 1.9% in pre-market trading following the disclosure.
All three 2026 disposals have been executed below the $75,419 average cost basis. The next quarterly dividend payment is due in October, and the company will need to decide whether to sell more Bitcoin, issue more stock, or tap the reserve to cover it.
