Strategy sells 3,588 BTC for $216 million, with total bitcoin holdings still underwater

Bitcoin treasury company Strategy sold 3,588 BTC for approximately $216 million last week, according to an 8-K filing with the Securities and Exchange Commission on Monday.

The firm said it sold 1,363 BTC for $80.8 million between June 29 and June 30 at an average price of $59,256 per bitcoin. It also sold 2,225 BTC for $135.2 million at an average price of $60,773 between July 1 and July 5.

Strategy has therefore reduced its total holdings to 843,775 BTC — worth around $52.3 billion — bought at an average price of $74,476 per bitcoin for a total cost of around $63.7 billion, including fees and expenses, according to the company's co-founder and executive chairman, Michael Saylor.

That means Strategy's holdings are equivalent to more than 4% of bitcoin's 21 million supply cap, but carry around $11.4 billion of paper losses at current prices.

Proceeds from the bitcoin sales were used to fund payment of distributions on preferred stock and to replenish a portion of its USD reserve used for this purpose to $2.55 billion as of July 5.

In a Q2 financial update in the filing, Strategy said it recorded a $8.32 billion loss on digital assets during the quarter, including a $8.31 billion unrealized loss and $0.9 million realized loss. As the market value of its bitcoin fell below its purchase cost at the end of the quarter, the company also said it will fully offset the related deferred tax benefit with a valuation allowance.

Bitcoin dropped around 2% on Monday immediately following the filing, per The Block's BTC price page. MSTR shares are currently down 1.9% in pre-market trading.

'Bitcoin is digital energy'

Saylor posted another Strategy bitcoin acquisition tracker chart to X on Sunday with the caption "Bitcoin is digital energy." Similar posts have typically preceded bitcoin acquisition announcements the following day, though the company's strategy has varied in recent weeks.

In a separate post, Saylor also argued that Bitcoin's next phase of growth will be driven less by protocol changes and halving cycles and more by institutional capital, credit markets, and financial infrastructure built around the network.

Indeed, last week, Strategy paused its bitcoin acquisitions, instead opting to expand its USD reserve and announce a digital credit repurchase program.

As part of its new Digital Credit Capital Framework, Strategy adopted a board-approved policy requiring its USD reserve to be used only for preferred stock dividends and interest payments. The reserve must cover at least 12 months of those obligations and stood at $2.55 billion as of June 28, up from $1.4 billion a week earlier.

The company also authorized a $1 billion Digital Credit Securities Repurchase Program covering STRC, STRF, STRD and STRK, with STRC expected to be the initial priority. A new STRC Dividend Policy gives management discretion to review the dividend rate monthly based on market conditions, bitcoin prices, credit spreads, reserve coverage, and other factors, noting the dividend will not automatically increase if STRC trades below its $100 par value.

STRC had become the primary driver of its bitcoin acquisitions earlier this year and currently offers an annualized rate of 12%. However, it has struggled to regain par since mid-May and therefore has not been used to accumulate additional bitcoin for several weeks.

STRC recovered to close at $87.87 on Thursday ahead of the U.S. holiday, having previously collapsed to a new low of $71.25 as bitcoin dropped below $60,000.

Strategy also approved a separate $1 billion Class A common stock repurchase program last week, which will not be funded from the USD reserve, and introduced a BTC Monetization Program allowing it to sell bitcoin to raise up to $1.25 billion for the reserve, preferred stock dividends and interest payments, or repurchases of digital credit securities and common stock.

As of July 5, the full amount of this capacity remains available, the firm said Monday.

'Avoidable two-way risk'

The formalization of Strategy's bitcoin sale policy introduces "avoidable two-way risk" into crypto markets, as the company could now become both a buyer and seller of bitcoin, analysts at JPMorgan said.

However, the firm has bought about 175,000 BTC for roughly $14 billion so far in 2026, and analysts at Bernstein argued Monday that Strategy's balance sheet makes forced selling unlikely.

Per Bitcoin Treasuries data, 197 public companies have adopted some form of bitcoin acquisition model. Tether-backed Twenty One, Metaplanet, MARA, and Adam Back and Cantor Fitzgerald-backed Bitcoin Standard Treasury Company make up the rest of the top 5, with 43,514 BTC, 43,000 BTC, 36,303 BTC, and 30,021 BTC, respectively.

Strategy's stock gained 21.1% overall last week following its Digital Credit Capital Framework announcement, closing on Thursday at $100.77, according to The Block's MSTR price page. However, it remains 73.7% down over the past year. Bitcoin rose around 3% during the same period last week.

On Tuesday, Benchmark reiterated its Buy rating on Strategy with a $570 price target, citing the company’s new Digital Credit Capital Framework, while TD Cowen cut its Strategy price target to $260 from $400, citing a lower bitcoin price forecast.