Strategy Inc., the Bitcoin treasury company formerly known as MicroStrategy, disclosed on Monday that it sold 1,638 Bitcoin for approximately $104.7 million during the week ended August 2.
The proceeds, combined with common stock sales, helped lift the company’s U.S. dollar cash reserve to about $4 billion while funding preferred stock dividends and share repurchases. Both the common shares (MSTR) and the variable-rate preferred stock (STRC) closed higher on the day, though the initial market response was cautious.
MSTR closed Monday at $94.86, up 1.69%, after trading in a range of about $90.93 to $96.06. STRC, designed to trade near its $100 par value, closed at $92.32, a gain of 3.20%, as per Yahoo Finance data.
Pre-market trading had shown weakness in the common shares, with market data showing declines of 1% to 2% as investors digested the continued sale of Bitcoin below cost. The preferred stock held steadier, reflecting the direct support from buybacks and the reinforced cash buffer.
Capital Framework in Focus
The latest transactions sit within Strategy’s Digital Credit Capital Framework, unveiled earlier this summer. That framework formally authorized limited Bitcoin sales to replenish reserves, cover preferred dividends and interest, and fund repurchases of both preferred and common shares. The company has paused new Bitcoin purchases for several weeks, prioritizing liquidity and support for its preferred securities structure instead.
Official data notes that STRC currently yields 12.96% on a variable basis and remains below its target trading band near $100. The recent buybacks, executed at a discount to par, are viewed as accretive and aimed at stabilizing the preferred.
For common shareholders, the dilution from fresh equity issuance and the reduction in Bitcoin holdings represent ongoing trade-offs as the company manages its capital stack in a lower Bitcoin price environment.
Market reaction to earlier Bitcoin sales this year was more sharply negative. The comparatively muted response this time suggests investors have begun to price in a more flexible treasury policy. Still, selling Bitcoin at a realized loss relative to cost continues to draw scrutiny from pure long-term holders who prefer the original “never sell” posture.
Read: Michael Saylor Clarifies Bitcoin Stance After Strategy’s 1,638 BTC Sale
What Comes Next for the Pair
Both securities remain highly sensitive to Bitcoin’s price action and to any further capital management updates. MSTR’s 52-week range stretches from $81.81 to $414.36, underscoring the volatility that has defined the name. STRC’s tighter 52-week band of $71.25 to $100.42 reflects its preferred status, yet it too has swung meaningfully as dividend coverage and market sentiment shifted.
Analysts have trimmed some price targets on the common shares in recent days, citing the ongoing need to balance Bitcoin exposure with cash obligations. At the same time, the strengthened reserve and active preferred buybacks provide a clearer near-term backstop for the capital structure.
Today’s trading session on August 4 will play an important role in determining whether Monday’s gains can translate into sustained momentum for the rest of the week. A firm open and follow-through buying would signal that investors are comfortable with the latest capital moves. Conversely, a slide back toward recent lows could indicate residual skepticism about further Bitcoin sales and equity dilution.
Also read: Coldcard Hack Stirs Dormant Bitcoin, Retail Transfers Hit FTX-Era Highs
