Strategy sells 1690 bitcoins to buy back STRC shares

Michael Siler's Strategy Company sold 1,690 bitcoins between August 3 and August 9, 2026, and the proceeds were used to repurchase its STRC preferred shares. This is a rare case of Bitcoin holders in the largest company reducing their positions to manage their capital structure.

The sale was disclosed on Form 8-K filed with the Securities and Exchange Commission on August 10, 2026. Strategy said that after deducting fees and expenses, the 1,690 bitcoins generated a net gain of $108.6 million at an average selling price of $64,262 each.

Sell 1,690 bitcoins

An SEC filing dated August 10, 2026 shows that the sale provided funding for the STRC repurchase program. This move is eye-catching because Strategy has been accumulating Bitcoin for years and rarely reduces its holdings. The company's stance has always been to hold its treasury assets as long-term, and even its executives have said that selling thousands of bitcoins will not affect market prices.

Why Strategy buys back STRC shares

Strategy said that the net proceeds from selling Bitcoin have been used to buy back STRC shares under its digital credit securities repurchase program. Between August 3 and 9, the company bought back 1,152,020 STRC shares for the same $108.6 million. During the same reporting period, Strategy matched proceeds from the Bitcoin sale with a $108.6 million STRC repurchase.

This mechanism was not a temporary idea. The Digital Credit Capital Framework approved by Strategy's board of directors on June 29, 2026 clearly authorizes the realization of Bitcoin for repurchase of digital credit securities or Class A common shares. CEO Phong Le described the framework as a two-way capital leverage when he launched it. "We plan to issue securities when capital is attractive, and repurchase securities when the level of our instrument trading makes the repurchase have a thickening effect," Le said.

Buyback of STRC reduces the number of outstanding shares, which helps support the value of the remaining shares and suggests that management believes the security is undervalued relative to the terms of its issue. The plan launched on July 27, 2026 sets a continuous repurchase policy for this preferred stock instrument.

Strategy still holds 840,447 bitcoins

This sale has little impact on Strategy's overall position. According to documents, the company held 840,447 bitcoins after the transaction, with a total acquisition cost of US$63.36 billion and an average purchase price of US$75,385 each. The disposal was not the company's only capital activity during the period. Strategy sold 6,585,682 MSTR shares for a net income of $653.1 million, of which $650 million was injected into its U.S. dollar reserves and $3.1 million was retained in cash, with reserves of $4.65 billion as of August 9.

This parallel equity financing shows that the Bitcoin sale is a targeted financing step to fund the repurchase and is not a departure from the treasury asset strategy. The company continues to raise funds on the open market while using a small portion of Bitcoin for stock buybacks.

What it means for Bitcoin and Strategy investors

For shareholders who follow Bitcoin, the meaning needs to be savoured carefully. The sale of 1,690 bitcoins accounted for only approximately 0.2% of Strategy's position, so it had little impact on the direct supply of the bitcoin market, while the asset's trading price that day was close to US$64,088, down approximately 1.4%. Market sentiment provides the context for cautious interpretation. The Cryptocurrency Fear and Greed Index is in the "Fear" range of 29, and in this context, any news that the largest corporate holders are selling Bitcoin can have a disproportionate emotional impact.

The bullish interpretation is that Strategy is enforcing capital discipline and buying back securities when it believes prices have a thickening effect, rather than issuing them when they are weak. A more cautious view is that any Bitcoin monetization, no matter how small, tests the continuity of the story of purely buy-and-hold treasury assets. This model is not unique to Strategy. Miners and business owners have increasingly viewed Bitcoin as a liquid balance sheet tool, with Marathon Digital selling 23,093 bitcoins in the first half of 2026 to keep it afloat. In contrast, Strategy's sale was smaller and strictly limited to the approved repurchase authority.