Strategy ended a four-week pause by selling 1,638 Bitcoin for $104.73 million to fund STRC preferred stock dividends and buybacks. The firm also raised $290.6 million via common stock sales, boosting its USD reserve to $4 billion. This shift reflects a new capital framework prioritizing liquidity and STRC support over aggressive Bitcoin purchases, as STRC trades 10.6% below its $100 par value.
Bitcoin sale for STRC support
- ▪Strategy allocated $52.4 million from its Bitcoin sale proceeds to fund dividend payments on its STRC perpetual preferred stock.
- ▪Strategy's Bitcoin holdings decreased to 842,138 Bitcoin, acquired at an average cost of approximately $75,419 per coin.
- ▪Strategy allocated $52.3 million from its Bitcoin sale proceeds to repurchase STRC preferred shares under its Digital Credit Securities Repurchase Program.
- ▪Strategy sold 1,638 Bitcoin for $104.73 million at an average price of $63,957 per coin during the week ended August 2, 2026.
Revised capital allocation framework
- ▪Strategy Executive Chairman Michael Saylor stated during a July 31, 2026 earnings call that the company would no longer direct every available dollar toward immediate Bitcoin purchases.
- ▪Strategy introduced a capital framework at the end of June 2026 allowing Bitcoin sales to support preferred-stock dividends, debt obligations, security repurchases, and its dollar reserve.
- ▪Strategy CEO Phong Le stated that the company would hold off on additional Bitcoin purchases while STRC preferred stock continues trading below its $100 stated value.
STRC preferred stock performance
- ▪Strategy repurchased 912,143 shares of STRC preferred stock for $81.2 million during the week ended August 2, 2026.
- ▪STRC preferred stock traded at $89.40 during the pre-market session on August 3, 2026, representing a 10.6% discount to its $100 stated value.
- ▪Strategy maintained the variable annualized dividend rate for its STRC preferred stock at 12% for record dates beginning in August 2026.
Cash reserve expansion strategy
- ▪Strategy raised $290.6 million in net proceeds by selling 3,011,361 shares of MSTR Class A common stock through an at-the-market equity program.
- ▪Strategy used $28.9 million from its common stock sales for STRC repurchases and added $11.7 million to its general cash balance.
- ▪Strategy added $250 million from its common stock sales to its U.S. dollar reserve, bringing the total reserve balance to approximately $4 billion.
Quarterly financial results
- ▪Strategy reported an $8.22 billion net loss during the second quarter of 2026, driven by an $8.32 billion unrealized loss on its Bitcoin holdings under fair-value accounting rules.
- ▪Strategy has paid out over $693 million in preferred distributions since launching its preferred stock program in early 2025.
Analyst ratings
- ▪Benchmark and H.C. Wainwright maintained buy ratings for Strategy following its second-quarter quarterly results, though Benchmark lowered its price target.
- ▪TD Cowen and Benchmark analysts backed Strategy's capital moves, including building up its dollar reserve and repurchasing STRC preferred stock.
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