Strategy turns 1,690 BTC into $108.6M STRC buyback
Strategy sold 1,690 Bitcoin for $108.6 million between Aug. 3 and Aug. 9 to repurchase STRC preferred shares, its second weekly BTC-funded buyback in a row.
Intelligence analysis by Llama
Strategy, the largest corporate Bitcoin holder, sold 1,690 BTC at an average of $64,262 per coin to fund a $108.6M STRC buyback. Its dollar reserve climbed to $4.65B and STRC shares have rebounded 24% from June lows.
Strategy has a giant piggy bank full of Bitcoin. They sold a small slice of that Bitcoin and used the cash to buy back special shares called STRC, kind of like trading marbles for baseball cards they already sold. They also stacked up a big pile of regular dollars to keep paying people who own those special shares.
Analysis
1,690 BTC
Strategy's latest sale, disclosed in a Monday 8-K filing with the SEC, covered the Aug. 3 to Aug. 9 window and netted $108.6 million from 1,690 Bitcoin sold at an average net price of $64,262 per coin. That figure sits well below the company's average purchase price of $75,385 per BTC across its full treasury, meaning Strategy is effectively realizing a paper loss on each coin it converts to fund its preferred-stock obligations. The transaction brings 2026 disclosed BTC sales to 6,948 BTC across four events, while the company still holds 840,447 BTC purchased for an aggregate $63.36 billion.
For a balance sheet built on the premise that Bitcoin appreciation will outpace the cost of capital, realizing losses to meet dividend and buyback obligations is a notable tell. The math is straightforward: every BTC sold at $64,262 narrows the spread between the company's average cost basis and the market price, tightening the cushion that bulls rely on to justify the premium-to-NAV trade that has powered MSTR stock for years.
$4.65 billion dollar reserve
Alongside the sale, Strategy reported a US dollar reserve of $4.65 billion as of Sunday, up from roughly $4 billion the prior week. According to the filing, $650 million of the $653.1 million in net proceeds from recent MSTR common-stock sales flowed into that reserve, with the balance reflecting expected proceeds from at-the-market offerings that had not yet settled. The reserve gives Strategy dry powder to meet monthly STRC dividends without forcing further BTC liquidation in a weak tape.
The reserve build matters because Strategy's preferred-share program carries a variable dividend that resets with market rates, and the company's stated playbook has long been to keep enough liquidity to cover a year of obligations. A $4.65 billion cash pile is a clear signal that management prefers selling newly issued equity and small slices of Bitcoin over touching the bulk of the 840,447 BTC treasury. The remaining authorization is also non-trivial: $785.2 million under the digital credit securities repurchase program and another $1 billion under the Class A common-stock program.
STRC's 24% rebound from June lows
STRC, Strategy's variable-rate preferred stock designed to pay monthly dividends, retook the $90 mark on Aug. 3 after climbing roughly 24% from its June lows, according to the article. The shares were up another 0.46% to $95.45 in premarket trading Monday, while MSTR gained 0.25% to $100.26. The buyback program is a direct lever on STRC's price, and the company has now used BTC proceeds for STRC repurchases in two consecutive weekly disclosures, including the prior 1,638 BTC sale for $104.73 million between July 27 and Aug. 2.
That repeated, predictable cadence is turning into a quasi-policy: every Monday filing is now read as both a Bitcoin-supply event and a STRC-support event. Investors who framed Strategy purely as a Bitcoin proxy are now also trading a second instrument whose price is being mechanically influenced by corporate buybacks funded in BTC. Whether that dual mandate can be sustained depends on the dollar reserve holding out, and on Bitcoin's spot price remaining high enough that the small percentage of the treasury sold each week doesn't itself become a drag on the market.
Key points
- Strategy sold 1,690 BTC for $108.6M between Aug. 3 and Aug. 9, its second weekly BTC-funded STRC buyback in a row
- Average sale price of $64,262 sits well below the $75,385 average purchase price across the 840,447 BTC treasury
- 2026 BTC sales now total 6,948 BTC across four disclosed events; year-to-date holdings still stand at 840,447 BTC
- US dollar reserve climbed to $4.65 billion, up from roughly $4 billion the prior week
- STRC shares have rebounded 24% from June lows, retaking $90 on Aug. 3 and trading at $95.45 premarket Monday
The $4.65 billion dollar reserve gives Strategy ample runway to keep covering STRC dividends and executing buybacks without leaning on the bulk of its 840,447 BTC treasury. If BTC stabilizes or recovers, the small percentage of coins liquidated each week becomes a rounding error on the balance sheet rather than a structural issue.
Selling BTC at an average $64,262 against a $75,385 cost basis means Strategy is crystallizing losses to fund its preferred-stock obligations, which erodes the premium-to-NAV thesis that has supported MSTR for years. If BTC drifts lower, the company faces a harder trade-off: liquidate more of the treasury to defend STRC, or let the dollar reserve deplete and risk the variable dividend biting into equity holders.
