Strategy Sells Another 1,638 Bitcoin While Expanding $4 Billion Cash Reserve

Bitcoin treasury firm Strategy has sold another portion of its Bitcoin holdings, continuing its recent shift toward raising cash and managing shareholder commitments rather than increasing its crypto reserves.

According to a filing submitted to the U.S. Securities and Exchange Commission (SEC) on Monday, the company disposed of 1,638 BTC between July 27 and August 2, generating approximately $104.7 million. The Bitcoin was sold at an average price of $63,957 per coin.

The proceeds from the transaction were divided almost evenly between two corporate priorities. Around $52.4 million was used to pay dividends on the company's preferred shares, while another $52.3 million went toward repurchasing shares of its Stretch (STRC) preferred stock.

The latest sale extends a trend that has emerged over recent months, with Strategy choosing to reduce a small portion of its Bitcoin holdings instead of making fresh purchases. Rather than deploying capital into additional BTC acquisitions, the company has focused on maintaining liquidity and supporting its financial commitments.

Alongside the Bitcoin sale, Strategy also raised fresh capital through its at-the-market (ATM) stock program. During the same reporting period, the company sold more than 3 million shares of its MSTR common stock, generating net proceeds of roughly $290.6 million.

A significant portion of those funds—about $250 million—was transferred into the company's USD Reserve, a cash pool created to help finance preferred stock dividends and interest payments on outstanding debt. Following the latest contribution, the reserve has grown to approximately $4 billion.

Strategy also continued its previously announced share repurchase initiative. Over the past week, the company bought back 912,143 STRC preferred shares for approximately $81.2 million. However, it did not repurchase or issue shares tied to its other preferred securities, including Strife (STRF), Strike (STRK), and Stride (STRD), during the reporting period.

Despite the recent sales, Strategy remains the world's largest corporate Bitcoin holder. The company still owns 842,138 BTC, valued at roughly $54 billion based on Bitcoin trading near $64,000. Its total investment in Bitcoin stands at approximately $63.51 billion.

The company's board also reaffirmed the annual dividend rate for STRC at 12%, approving dividend payments of $0.50 per share for periods ending August 31 and September 15. Management has previously indicated it has no plans to recommend lowering the dividend rate until STRC consistently trades near its stated value of $100 per share.

Although Strategy has been trimming its Bitcoin position in recent weeks, executives continue to describe the moves as part of broader treasury management rather than a change in long-term strategy. Chief Executive Officer Phong Le has reiterated that the company still views Bitcoin as a core treasury asset and intends to remain a long-term buyer when appropriate.

The company, formerly known as MicroStrategy, began accumulating Bitcoin in August 2020 as part of an effort to preserve shareholder value during the pandemic. Its aggressive buying strategy transformed it into the largest corporate Bitcoin owner globally and inspired dozens of publicly traded companies to adopt similar Bitcoin treasury models. While recent activity has centered on balance sheet management, Strategy continues to hold one of the largest institutional Bitcoin positions in the market.