Strategy reported selling 3,588 Bitcoin (BTC) for approximately $216 million between June 29 and July 5, as part of a new capital management framework. This move, which generated about $218.4 million in total Bitcoin sales through July 26, represents a departure from the company's prior "never sell" stance on its Bitcoin holdings. The proceeds from these sales were primarily used to fund preferred-stock distributions and to replenish the company's dollar reserve, which has now increased to $3.75 billion. This reserve is designed to cover over two years of preferred dividends and interest obligations.
Strategy's second-quarter 2026 financial report revealed an $8.22 billion net loss, largely attributed to an $8.32 billion unrealized loss on its digital assets. As of July 26, the company held 843,775 BTC, down from 846,000 at the end of June. The original cost of these holdings was approximately $63.69 billion, averaging about $75,476 per BTC. At a Bitcoin price of $64,915 on July 27, the holdings were valued at $54.77 billion, indicating an unrealized shortfall of around $9 billion. The company has also authorized up to $1.25 billion in Bitcoin sales under its new Bitcoin Monetization Program, to be used for rebuilding its dollar reserve, paying dividends, or funding stock repurchases.
The new capital framework provides Strategy with greater flexibility to manage its finances, particularly in response to fluctuating Bitcoin prices or rising dividend obligations. The company also repurchased $25 million of its STRC preferred shares at an average price of $86.53, below their $100 stated value, potentially reducing future dividend costs. This shift in strategy, while not a change in long-term conviction, allows management to optimize capital allocation, including repurchasing its own securities when they trade at attractive levels.
Strategy raised $17.06 billion through at-the-market equity offerings this year and $8.4 billion in the second quarter alone, with $5.5 billion coming from digital credit instruments. This has increased its USD reserve to $3.75 billion, providing a buffer that covers approximately 2.1 years of obligations. The company also authorized a $1 billion share repurchase program for its common stock and has repurchased $1.5 billion of convertible notes at an 8% discount. Despite the sales, Strategy remains the largest institutional holder of Bitcoin globally.
