Strategy Discloses Sale of 1,690 Bitcoin (BTC) for $108.6 Million

Bitcoin News

Strategy's investor-relations disclosure, published on Monday Aug. 10, confirmed the company disposed of 1,690 Bitcoin (BTC), generating $108.6 million. The filing shows the firm directed the full proceeds toward repurchasing its preferred stock rather than adding to its holdings. Carried with identical figures across several distribution channels, the statement marks a rare disposal from the largest corporate Bitcoin treasury, an operation that for years has only accumulated. The same release detailed a sizable equity issuance that expanded the company's dollar buffer, pointing to a broader recalibration of a balance sheet still overwhelmingly denominated in the cryptocurrency even as it trims at the edges.

The same disclosure outlined a parallel capital raise. Through its at-the-market issuance program, Strategy sold 6.59 million MSTR common shares, raising $653.1 million on a net basis. Of that total, $650 million was allocated to the company's U.S. dollar reserve, with the remainder counted toward its cash balance. Reported in identical terms through each channel carrying the announcement, the offering illustrates how the firm continues to lean on public equity markets to fund its obligations. The share sale stands apart from the coin disposal, and together the two tracks form a coordinated restructuring of the treasury company's liabilities.

The Bitcoin sale was explicitly paired with a preferred-stock buyback. Strategy used the $108.6 million raised from disposing of 1,690 coins to repurchase 1.15 million shares of STRC, its variable-rate Series A perpetual Stretch preferred stock. Described consistently across each channel carrying the announcement, the matched transactions show the firm treating a slice of its reserve as a financing instrument. The repurchase draws down a program announced in late June, under which a further $785.2 million remains available. For a company long defined by accumulation, converting BTC into preferred-equity retirement is a notable shift in capital management.

Beyond the matched trades, the disclosure emphasized a swelling cash cushion. Strategy's U.S. dollar reserve climbed to $4.65 billion as of Aug. 9 after the $650 million allocation drawn from the share sale. The company stated the reserve is intended to support preferred-stock dividend payments and interest on outstanding debt. Building this buffer signals that Strategy is preparing its increasingly complex capital structure to absorb periods of market stress, including a prolonged bear market in its core holding. The cushion stands in contrast to a treasury still dominated by an asset trading below the company's average purchase price.

After the transaction, Strategy still holds 840,447 Bitcoin, acquired for a total of $63.36 billion at an average price of $75,385 per coin. The filing did not disclose the specific cost basis of the 1,690 coins sold, so the realized gain or loss on that trade cannot be determined from the statement alone. The coins were offloaded at an average of $64,262 each, well under the treasury's blended entry — a gap that only closes if the market climbs back toward its prior all-time high. Investors are now watching whether this disposal is a limited adjustment or a new willingness to fund operations from the reserve.

Michael Saylor framed the transactions as strengthening the company's preferred-stock position. In public comments, he said the STRC repurchase tightened the instrument's “BTC credit” by 10 basis points and that the broader moves extended Strategy's “dollar duration” by 143 days to 2.7 years. Saylor described an internal credit model that prices the preferred stock's BTC credit using assumptions of 10% annual Bitcoin appreciation, 40% volatility, and a reference price of $64,915. The filing itself offered insufficient detail to reproduce that proprietary calculation. Whether the 1,690-coin sale is a one-off recalibration or the start of more active reserve management remains the open question.

COINOTAG's proprietary 42-indicator composite scoring engine rates Bitcoin's nearest overhead at $65,367 as 66/100, driven by a swing high and the upper Bollinger band, while the $67,004 ceiling scores 75/100 off low-volume nodes and the 0.382 Fibonacci retracement. Below, the $63,834 floor scores 77/100, anchored by the 50-period SMA and Ichimoku Tenkan. Derivatives show near-neutral positioning with funding at 0.0045% and a 1.30 long-to-short ratio, and a Fear and Greed reading of 30 signals caution as Bitcoin holds a 69.7% share of COINOTAG's tracked market versus altcoin peers. A reclaim of $65,367 opens $67,004; losing $63,834 invalidates the bullish structure. The filing establishes the sale, though nothing in the single company channel confirms broader intent.