Strategy Inc., the Bitcoin treasury company formerly known as MicroStrategy, sold 1,638 BTC in the week of July 27 to August 2, 2026, using the proceeds to pay preferred dividends and repurchase its own STRC preferred stock, according to its weekly Form 8-K filing submitted to the Securities and Exchange Commission (SEC) on August 3, 2026.
The disposal fetched an aggregate $104.73 million at an average sale price of $63,957 per coin, roughly $11,462 below the $75,419 average cost at which Strategy accumulated its stack. In per-coin terms, the company realized a loss of approximately 15% on the sale, splitting the proceeds almost evenly between $52.4 million in preferred dividend payments and $52.3 million in STRC buybacks under the Digital Credit Securities Repurchase Program.
Strategy’s Bitcoin holdings now stand at 842,138 BTC. Its MSTR common stock traded 3.81% lower on the day of the filing, wiping $1.43 billion off a market capitalization that now sits at $36.16 billion.
Buyback Funded By Both Dilution and Bitcoin Sales
The company retired 912,143 STRC shares for $81.2 million during the week, at an average buyback price of roughly $89, well below the $100 stated amount. That $81.2 million bill was covered from two pockets: $52.3 million from the Bitcoin sale and $28.9 million from at-the-market MSTR common stock issuance.
The MSTR side of the ledger tells its own story. Strategy issued 3,011,361 new shares of common stock during the week for $290.6 million in net proceeds, of which $250 million was directed to the USD Reserve, $28.9 million to STRC buybacks, and $11.7 million to the cash balance. Put plainly, MSTR common shareholders absorbed roughly 3 million shares of fresh dilution in a single week to help fund the preferred stock repurchase and the reserve build.
Following this week’s activity, approximately $893.8 million remains available under the $1 billion Digital Credit Securities buyback program, while the separate $1 billion MSTR Class A common stock repurchase authorization remains untouched. Available ATM issuance capacity across the securities now stands at $22,690.5 million for MSTR (which includes the $21 billion MSTR Increase authorized on March 23), $17,510.8 million for STRC, $4,014.8 million for STRD, $2,100 million for STRK, and $1,619.3 million for STRF.
USD Reserve Extended, BTC Reserve Continues to Shrink
The $250 million transferred to the USD Reserve took the balance to $4.0 billion, extending the USD Duration by 57 days to 2.3 years. On the other side of the balance sheet, Strategy reported STRC’s BTC Credit tightening by 5 basis points, a small directional move it has flagged in its official announcement.
The BTC Credit calculation itself is worth examining. Strategy has disclosed that its credit model uses assumed inputs of 10% BTC ARR, 40% BTC volatility, and a BTC price of $62,900. With spot Bitcoin trading only fractionally above that assumed level, the model provides limited headroom if the price were to slip further.
The Bitcoin reserve, meanwhile, continues to shrink under this framework. Strategy has now been a net Bitcoin seller for multiple consecutive weeks, a reversal of the aggressive accumulation stance it held through early 2026. The stack has drifted from 843,775 BTC in mid-July to 842,138 BTC as of August 2, driven entirely by disposals earmarked for preferred dividend service and buybacks rather than any market-based repositioning.
Dividend Rate Held at 12%, Two Semi-Monthly Payouts Declared
On July 31, Strategy also confirmed that STRC’s annualized dividend rate will remain at 12.00% for semi-monthly periods commencing on or after August 16, 2026. The board declared two semi-monthly cash dividends of $0.50 per share, payable on August 31 to holders of record as of August 15, and again on September 15 to holders of record as of August 31. Both distributions are expected to be characterized as non-taxable returns of capital to the extent of a shareholder’s tax basis in the stock.
Management has said it does not intend to recommend a rate change until STRC demonstrates sustained trading at or near its $100 stated amount. STRC has traded below par since mid-May 2026 and touched an intraday low of $71.25 in June.
Dashboard Metrics: Volatility Elevated, MSTR Under Pressure
The company’s live dashboard shows Market Cap at $36.16 billion, down 3.81% on the day, and Enterprise Value at $54.26 billion. Debt sits at $6.75 billion, total preferred equity at $15.35 billion, and Net Leverage at 5%. Amplification, the metric tracking Bitcoin exposure per common share, has been updated to 1.52x, a figure that will continue to compress as long as MSTR issuance outpaces Bitcoin accumulation.
Volatility metrics remain historically high: 30-day historical volatility at 84%, one-year at 75%, and implied volatility at 72%, while options open interest sits at $24.6 billion. Annual interest and dividend obligations total $1.75 billion. The 2.3-year USD Duration now nominally covers those obligations without touching Bitcoin, though the last two weeks demonstrate that Bitcoin has, in practice, still been part of the funding mix.
What the Filing Actually Shows
Stripped of framing, the August 3 filing describes a single week in which Strategy issued 3 million new MSTR shares, sold 1,638 BTC at a loss to its cost basis, added $250 million to a rainy-day reserve, and used the balance to shrink the STRC float by 912,143 shares. The cumulative direction of travel is unambiguous: the Bitcoin stack is smaller, the MSTR float is larger, and the STRC obligation, though partly retired, still sits well below its $100 stated amount at the point of buyback.
The 5 basis point tightening in STRC’s BTC Credit will be tracked, but a single week of directional movement in a proprietary spread is not, by itself, validation of the model. The two questions the filings from here will be asked to answer are simple: whether STRC ever trades back to par, and how much more Bitcoin has to be sold in the interim to keep the preferred dividends flowing. On the evidence of this week, both answers remain open.
Also Read: Strategy Authorizes Up to $5B in Bitcoin Sales as 843,775 BTC Stack Sits $9B Underwater
