Strategy sells $395 million in Bitcoin and MSTR stock to buyback $81 million in STRC and build cash reserve to $4 billion

A notable development has hit the crypto markets. Strategy's latest Bitcoin sale lifted its 2026 disposals to 5,258 BTC, the largest amount it has sold in any year since adopting the asset in 2020, as the company redirects capital toward supporting its preferred securities. The company sold 1,638 BTC for $104. 7 million between July 27 and Aug.

2 and issued about 3. 01 million MSTR common shares for another $290. 6 million, according to an Aug.

Market Dynamics

3 filing with the US Securities and Exchange Commission. None of the nearly $395 million raised went toward new Bitcoin purchases. Instead, Strategy used the capital to fund preferred dividends, repurchase STRC shares and complete the expansion of its US dollar reserve to $4 billion.

The allocation extended its Bitcoin acquisition pause to six consecutive weeks, its longest since 2024. How Strategy Utilized its Latest Raise (Source: PurdyCapital) STRC's discount forces Strategy to redirect capital The most immediate obstacle to Strategy resuming Bitcoin purchases is STRC, a variable-rate preferred stock the company wants to establish as a repeatable funding source for its treasury. When STRC trades near its $100 stated amount, Strategy can issue additional shares around par and deploy the proceeds across its capital structure, including toward Bitcoin purchases.

Trading at a sustained discount weakens that channel because new issuance would require either a lower sale price or a higher dividend yield to attract investors. STRC has remained below par since May despite a dividend structure that allows Strategy to adjust the payout to support its market price. The company has responded by raising the annual dividend rate to 12% and repurchasing shares at a discount.

Market Impact

Last week, Strategy used $52. 3 million from its Bitcoin sale and $28. 9 million from its MSTR issuance to buy back 912,143 STRC shares for $81.

The transaction followed a $25 million repurchase the previous week, when the company acquired 288,930 shares at an average price of $86. During the company's second-quarter earnings call, Strategy President and CEO Phong Le said buying STRC below par allows the company to retire future dividend obligations at a discount while strengthening demand as the shares move toward $100. Strategy has now spent about $106.

2 million on STRC repurchases since launching the program in July. 8 million under its preferred-stock repurchase authorization, while a separate $1 billion authorization for MSTR common-share buybacks remains unused. The company is targeting a return to par for STRC by September, with the pace of further purchases dependent on the stock's price and market liquidity.

This shift continues to shape the digital-asset landscape, with analysts examining its near-term effects.