Strategy has sold Bitcoin for a fourth consecutive week, using the proceeds to buy back its own preferred stock and push it back toward face value.
In the week to 9 August the company sold 1,690 BTC for $108.6 million at an average price of $64,262, then spent an almost identical $108.6 million buying 1.1 million shares of STRC. Across two weeks it has sold 3,328 BTC for around $213.3 million and put $189.8 million into STRC purchases.
Its Bitcoin holdings fell to 840,447 from 842,138 a week earlier.
Why a Bitcoin Company Is Selling Bitcoin
STRC is a preferred share Strategy issues to raise money. It pays a 12% annualised dividend and is meant to trade at $100. When it sits below that, as it has since falling to about $74 in late June, issuing new shares becomes an expensive way to raise capital, because buyers will only pay a discount for something the company values at par.
So the company has been buying its own shares in the open market to close the gap. STRC traded around $95 on Monday, up from the June low, helped by both the repurchases and the dividend. Over three weeks Strategy has acquired roughly 2.3 million shares worth about $214.8 million.
The logic is circular by design, and Strategy is open about it. Selling Bitcoin funds the buybacks. The buybacks lift STRC toward par. STRC at par becomes a cheaper instrument to issue, which is the point of the exercise.
What the Sales Cost
The prices matter here. Strategy sold at an average of $64,262 last week. The coins it still holds were acquired at an average of $75,385, for a total of $63.36 billion.
That means the company is liquidating Bitcoin well below its own average entry price to fund the intervention. Whether any individual sale booked a loss depends on which coins went and at what basis, and Strategy has not broken that out. What is visible is the distance between the price it is selling at and the average price it paid.
The scale is small. Strategy has sold 6,948 BTC so far this year, against a June peak of 847,363 and a current 840,447. It remains the largest corporate holder of Bitcoin in the world by a wide margin.
A Record Cash Buffer
The company is also not short of cash. During the same week it raised $653.1 million by selling 6.5 million MSTR shares through its at-the-market programme, directing $650 million of that into its US dollar reserve and the remaining $3.1 million into general cash.
That reserve reached a record $4.65 billion, up from $4 billion a week earlier.
‘Our USD Reserve and Duration are now at all-time highs. In 2.5 months, we added nearly $3.8 billion and grew both more than 5X,’ chief executive Phong Le wrote. ‘This is the Digital Credit Capital Framework at work.’
Executive chairman Michael Saylor said the latest addition extended the reserve’s duration by 143 days to roughly 2.7 years, meaning Strategy holds enough cash to cover close to three years of preferred dividends and debt interest without raising anything new. Around $22 billion remains available across its MSTR at-the-market programmes, and a separate $1 billion authorisation for common-stock buybacks is untouched.
The Last $5
What is unresolved is the final stretch to par.
On its second-quarter earnings call, management noted that STRC took roughly 70 trading days to reach $100 after its 2025 launch. Applied to the current recovery, that would put it back at par around 8 September. The situation is not identical, because this time the company is actively supporting the price through both the dividend and direct purchases.
Strategy has $785.2 million left under the $1 billion repurchase programme it authorised in June. If STRC closes the gap on its own, that capacity goes unused and the Bitcoin sales can stop. If it stalls, the company has already shown it will keep buying.
Bitcoin was trading around $63,980 on Tuesday, down 2% on the day and below the average price Strategy sold at last week.
