Strategy raised money from both its Bitcoin reserve and the capital markets during the latest reporting week.
Key Takeaways
- Strategy sold 1,638 BTC but retained approximately 99.8% of its reserve.
- It issued 3.01 million MSTR shares and added $250 million to its cash reserve.
- The company repurchased $81.2 million of STRC at an average price of about $89.
- Peter Schiff argues that supporting STRC is coming at the expense of common shareholders.
Strategy’s latest SEC filing shows that the company sold 1,638 BTC for approximately $104.7 million, receiving an average of $63,957 per coin.
During the same week, Strategy issued 3,011,361 MSTR shares through its at-the-market program, generating $290.6 million in net proceeds.
The company reported no Bitcoin purchases. It added $250 million to its US-dollar reserve and spent approximately $81.2 million repurchasing STRC preferred shares.
Strategy Sold 0.19% of Its Bitcoin Reserve
The sale left Strategy with 842,138 BTC as of August 2, meaning approximately 99.8% of the reserve remained intact.
The company also reported:
- $4 billion in its US-dollar reserve.
- 2.3 years of estimated coverage for preferred dividends and debt interest.
Strategy’s reported average acquisition cost was approximately $75,419 per Bitcoin. The latest sale price of $63,957 was about 15% below that portfolio-wide average.
This does not establish the accounting or tax result of the sale. The filing does not identify which Bitcoin purchase lots were sold, and individual lots may have had acquisition prices above or below the reported average.
Although the transaction removed only a small part of the reserve, it demonstrates how Strategy’s approach has changed. Bitcoin can now be sold to meet corporate funding needs rather than remaining entirely untouched on the balance sheet.
Why Strategy Bought STRC Below $100
Strategy’s Bitcoin monetization program permits BTC sales to support preferred dividends, debt interest, cash reserves and other capital-management transactions.
Its preferred securities require regular cash payments, while Bitcoin produces no income on its own. Strategy must fund those obligations through its software business, existing cash, securities issuance or Bitcoin sales.
STRC has been trading below its stated value of $100 per share. Strategy repurchased 912,143 shares for approximately $81.2 million, paying an average of about $89 each.
At $100 per share, the repurchased block represented approximately $91.2 million in stated value. Strategy therefore retired it for around $10 million less than that amount.
The shares also carried dividend obligations. At a 12% annual rate applied to their $100 stated value, the repurchased block represented approximately $10.9 million in annual dividends, assuming the rate remained unchanged.
The direct financial effect is fewer STRC shares outstanding and lower future dividend payments. The additional cash reserve gives Strategy more time to meet its remaining obligations before it needs to raise more capital or sell additional Bitcoin.
The MSTR Issuance Reduced Bitcoin Exposure per Share
Issuing more than three million MSTR shares increased the company’s cash but also expanded its common-share count.
Many investors use MSTR as indirect exposure to Strategy’s Bitcoin holdings. When the number of diluted shares rises while the Bitcoin reserve stays flat or declines, each share represents a smaller portion of the company’s BTC.
Strategy tracks this relationship through BTC Yield. Despite its name, BTC Yield is not a dividend, cash return or measure of MSTR’s stock performance. It measures changes in Bitcoin holdings relative to the diluted common-share count.
Strategy reported year-to-date BTC Yield of 13.3% as of May 25. The latest disclosed figure was 3.5%.
That is a relative decline of approximately 74% between the two readings. It does not mean MSTR shareholders lost 74%, or even 9.8%, in cash. It means that the earlier growth in Bitcoin per diluted share slowed sharply as Strategy issued more common stock, reduced the pace of BTC accumulation and later sold part of its reserve.
Schiff’s Criticism Focuses on Common-Share Dilution
Peter Schiff criticized the transactions, arguing that Strategy was issuing common shares and selling Bitcoin to support a preferred security with substantial dividend obligations.
He described the company as continuing to “sacrifice common shareholders to bail out preferred shareholders” and said:
“STRC is now an albatross around MSTR’s neck.”
Schiff used the decline in BTC Yield to support his argument that common shareholders are receiving less Bitcoin exposure as Strategy directs capital toward STRC.
The STRC repurchase has a measurable benefit: it removes approximately $10.9 million in annual dividend obligations at the current rate. The cost is also visible: Strategy issued additional MSTR shares and ended the week with fewer Bitcoin.
The filing cannot yet show whether the dividend savings will compensate common shareholders for the dilution and reduced BTC exposure. That will depend on future STRC repurchases, share issuance and Bitcoin activity rather than this one week alone.
What Changed for Strategy Investors
Strategy is still overwhelmingly exposed to Bitcoin, but its reserve now serves two functions. It remains the company’s primary treasury asset and can also be monetized to meet cash obligations or support other parts of its capital structure.
The latest transactions combined three funding tools: Bitcoin sales, common-stock issuance and existing cash. The proceeds were used to increase liquidity and retire discounted preferred shares rather than buy more BTC.
Future filings will show whether this was a limited adjustment or a recurring pattern. The clearest measures will be the amount of Bitcoin held per diluted MSTR share, the cash available for dividends and interest, and the remaining volume of preferred stock carrying regular payment obligations.
- Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Bitcoin holdings, preferred-stock repurchases, share issuance and proprietary performance metrics do not guarantee future returns.
- Methodology: The article uses Strategy’s Form 8-K covering activity through August 2, 2026, its official Bitcoin monetization and capital-management disclosures, Michael Saylor’s public update and Peter Schiff’s public response. Calculations concerning the proportion of Bitcoin sold, the difference from Strategy’s average acquisition cost, the discount to STRC’s stated value and the estimated avoided STRC dividends use figures disclosed by the company.
Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP.
Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem.
To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem.
His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
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