Strategy, a public company known for its large Bitcoin holdings and headed by Executive Chairman Michael Saylor, has reported selling 1,690 bitcoin between August 3 and August 9. The transaction generated $108.6 million, based on an average price of $64,262 per bitcoin, as disclosed in a recent Form 8-K filing.
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The company’s average cost basis for its bitcoin stands at $75,385 per coin, meaning the latest sale was executed at a significant loss. Strategy realized a loss of approximately $18.8 million from this batch of bitcoin sold at about $11,000 below its average purchase price.
After this transaction, Strategy’s remaining bitcoin total is 840,447 BTC. The company acquired these holdings at a total cost of $63.36 billion, but with Bitcoin trading near $64,975 on Monday, the current valuation puts this position roughly $8.7 billion in the red.
With bitcoin near $64,975 on Monday, the position is roughly $8.7 billion underwater.
Over the past two weeks, Strategy has liquidated a cumulative 3,328 bitcoin, raising about $213 million. This follows an earlier sale of 3,588 bitcoin, worth $216 million, between June 29 and July 5, which signaled the beginning of the company’s revised approach to its financing structure.
Executive Chairman Michael Saylor addressed the change of strategy in May, stating that the company remains intent on Bitcoin accumulation despite short-term sales. Saylor emphasized, “Even if we were to sell one bitcoin, we’d be buying 10 to 20 more bitcoin.”
Equity sales and repurchase program
In the same period, Strategy significantly ramped up its equity sales. The company raised $653.1 million from the sale of 6,585,682 MSTR shares, more than doubling the $290.6 million generated in the prior week.
Nearly all of the proceeds from these equity sales, about $650 million, were deposited into the company’s USD Reserve, which increased to $4.65 billion from $4.0 billion the previous week. The remaining $3.1 million was allocated to Strategy’s cash balance.
| Week | Bitcoin Sold | Bitcoin Sales ($) | Equity Raised ($) | USD Reserve ($) |
|---|---|---|---|---|
| June 29 – July 5 | 3,588 | 216 million | 290.6 million | 4.0 billion |
| Aug. 3 – Aug. 9 | 1,690 | 108.6 million | 653.1 million | 4.65 billion |
Proceeds from the bitcoin sale were used to buy back 1,152,020 STRC shares for $108.6 million, as part of the Digital Credit Securities Repurchase Program introduced on June 29. The repurchased shares averaged $94.27 each, which is below both the $100 par value and the prior Friday’s close of $95.01 per share.
Strategy indicated that it still has $785.2 million in preferred buyback capacity as well as $1 billion in available authorization for common stock repurchases.
Mini dictionary: Form 8-K, a report that public companies must file with the US Securities and Exchange Commission to disclose significant events that shareholders should know about, such as acquisitions, bankruptcies, or major asset sales.
