Strategy Sells $109M Bitcoin For Stock Buyback! Will BTC Crash?

Strategy has sold Bitcoin for a second straight week, raising fresh questions about how the company is managing its massive crypto treasury. 

Between August 3 and August 9, 2026, it sold 1,690 BTC for $108.6 million and used the entire amount to repurchase its STRC preferred shares. The move reduced holdings to 840,447 BTC while Bitcoin traded near $65,000, well below Strategy’s average purchase price of $75,385.

The key question for investors is whether these sales signal a shift away from Bitcoin or simply reflect short-term capital management needs.

Key Takeaways

• Strategy sold 1,690 BTC for $108.6M and used proceeds to buy back STRC shares.
• The company still holds 840,447 BTC despite two weeks of sales.
• Sales are small relative to total holdings but signal a shift toward liquidity management.

Bitcoin Sales Continue as STRC Buybacks Take Priority

The latest sale follows a similar move the week before, when Strategy sold 1,638 BTC for $104.7 million. In both cases, proceeds were directed toward supporting STRC preferred stock rather than increasing Bitcoin exposure.

In the most recent transaction, Strategy repurchased 1,152,020 STRC shares under its $1 billion Digital Credit Securities Repurchase Program, leaving about $785 million in remaining authorization.

This pattern shows a clear priority shift: Bitcoin is now being used as a funding source for capital structure management rather than purely as a long-term reserve asset.

Read also: MicroStrategy Holds 843,775 BTC After Selling 3,588 Bitcoin in July

Why STRC Buybacks Matter

STRC is designed to trade near a $100 stated value, but it previously fell into the $70 range before recovering into the mid-$90s.

Buying shares below $100 allows Strategy to retire higher-value obligations at a discount while also reducing future dividend liabilities. STRC currently carries a 12% annual dividend, making its cost meaningful for the company.

Management has said it wants STRC to stabilize near $100 before considering any reduction in dividend rates. That creates an incentive to support the price through buybacks when it trades below target levels.

Selling Bitcoin Below Average Cost

A notable concern is that Strategy sold Bitcoin at an average price of $64,262, well below its overall acquisition cost of $75,385.

After the sale, the company still held 840,447 BTC worth roughly $54.6 billion at current prices, compared to a total cost basis of about $63.36 billion.

While this does not necessarily mean realized losses across the entire portfolio, it highlights that Strategy is monetizing Bitcoin during a period of price weakness rather than strength.

From Accumulation to Liquidity Management

Strategy’s Bitcoin strategy has clearly shifted. After years of aggressive accumulation, the company has not purchased Bitcoin since June 2026.

Its holdings peaked at 847,363 BTC and have since declined slightly due to ongoing sales. The total reduction is about 0.8%.

A June capital framework also authorized up to $1.25 billion in Bitcoin sales, of which roughly $429 million has now been used. This suggests the recent activity is structured rather than reactive.

Read also: Strategy Unveils $2B Buyback and Bitcoin Sales Under New Capital Plan

MSTR Stock Sales Are Driving Most Cash Flow

Bitcoin sales are not the company’s main source of liquidity. Strategy also sold about 6.59 million MSTR shares, raising $653.1 million.

Of that, $650 million was added to its dollar reserve, which now stands at $4.65 billion.

This reserve is intended to support dividend payments and interest obligations, which total roughly $1.76 billion annually. It also extends Strategy’s estimated “USD duration” to about 2.7 years.

In comparison, Bitcoin sales contributed a much smaller portion of total liquidity.

Why the Cash Reserve Is Growing

Strategy is increasingly prioritizing liquidity over additional Bitcoin accumulation. The growing cash buffer reduces reliance on forced Bitcoin sales during downturns and helps stabilize dividend obligations.

However, it also comes from issuing more MSTR shares, which dilutes existing shareholders. The company has even indicated it may pursue additional large-scale equity offerings in the future.

This creates a balancing act between maintaining Bitcoin exposure and ensuring financial flexibility.

Has Strategy Changed Its Bitcoin Strategy?

Despite recent sales, Strategy insists it has not abandoned Bitcoin. Since 2020, its holdings have grown from 70,470 BTC to over 840,000 BTC, making it the largest corporate holder.

Executives have stated the company still expects to be a long-term net buyer of Bitcoin. However, the key change is flexibility: Bitcoin is now part of a broader capital structure rather than a strictly held reserve. 

How to Buy Bitcoin (BTC) Safely in 2026

Will Strategy’s Sales Crash Bitcoin?

There is no evidence that the $108.6 million sale alone can meaningfully impact Bitcoin’s price. The sale represents only about 0.2% of Strategy’s holdings. Even combined with recent activity, total reductions remain small relative to its overall position.

However, sentiment risk is real. If Strategy were to accelerate sales significantly, markets would likely react more strongly given its symbolic role in corporate Bitcoin adoption.

For now, the data points to controlled, programmatic selling rather than liquidation.

Read also: Strategy Bought 1,550 BTC After Selling: Is the Market Recovering?

Bitcoin Price Weakness Adds Pressure

The bigger issue is Bitcoin’s price relative to Strategy’s cost basis. With BTC near $64,000–$65,000, the company’s average purchase price of $75,385 means its holdings are underwater on paper.

This creates financial pressure that affects both its balance sheet perception and MSTR stock performance, which has also declined sharply from previous highs.

Because MSTR is widely viewed as a leveraged Bitcoin proxy, weakness in BTC tends to amplify concerns about Strategy’s capital structure.

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Conclusion

Strategy sells Bitcoin for the second consecutive week, but the latest transaction does not by itself point to an imminent Bitcoin crash.

The company sold 1,690 BTC for $108.6 million and used the full amount to repurchase STRC preferred shares. At the same time, Strategy raised a much larger $653.1 million through MSTR common stock sales and increased its dollar reserve to $4.65 billion.

FAQ

How much Bitcoin did Strategy sell?

Strategy sold 1,690 BTC between August 3 and August 9, 2026. The sale generated approximately $108.6 million at an average price of $64,262 per Bitcoin.

Why did Strategy sell Bitcoin?

Strategy used the entire $108.6 million in proceeds to repurchase 1,152,020 STRC preferred shares under its Digital Credit Securities Repurchase Program.

How much Bitcoin does Strategy still own?

Strategy held 840,447 BTC after the latest sale. Its total acquisition cost was approximately $63.36 billion, with an average cost of $75,385 per Bitcoin.

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