Saylor’s Strategy Sold 1,690 BTC, Increased USD Reserve by $650M

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Strategy sold 1,690 bitcoin for $108.6 million between August 3 and August 9, at an average price of $64,262 per coin, well below the $75,385 average price the company paid to build its position. The sale leaves Strategy holding 840,447 bitcoin, according to a Form 8-K filed with the SEC on August 10.

The company also sold 6,585,682 shares of its Class A common stock (MSTR) through its at-the-market program during the same week, generating $653.1 million in net proceeds. Of that, $650 million went directly into Strategy’s USD Reserve, which stood at $4.65 billion as of August 9. The reserve is meant to cover dividend payments on Strategy’s preferred stock and interest on its debt.

Bitcoin Sale Funds a Matching STRC Buyback

Bitcoin has spent the past week recovering off an early-August low near $62,235, closing out the period above $65,000 after a roughly 3% weekly gain. Its latest Bitcoin sale averaged $64,262 per BTC, compared with roughly $65,000 in the spot market used for comparison.

Strategy’s preferred stock, STRC, has also moved higher over the same stretch: trading data compiled by market aggregators puts the shares in the $94 to $95 range this week, up roughly 6.5% from a week earlier and well off a roughly $71 low reached in late June.

Its $108.6 million in proceeds went toward repurchasing 1,152,020 shares of STRC for exactly $108.6 million, an exact dollar-for-dollar match between what the bitcoin raised and what the buyback cost.

That’s a tighter pairing than the week before, when a $104.73 million bitcoin sale funded an $81.2 million STRC repurchase. The filing states that the bitcoin proceeds were earmarked for the STRC buyback. Strategy has now repurchased STRC for three consecutive weeks, while Bitcoin sales accompanied the repurchases in the latest two weeks.

Saylor Ties the Moves to Reserve and Credit Metrics

Michael Saylor framed the week’s moves on X as a credit-quality story, saying the company

“increased its USD Reserve by $650M and repurchased $109M of $STRC.”

He added that the moves extended what Strategy calls its USD Duration, a metric for how many years its reserve can cover preferred dividends and debt interest, by 143 days to 2.7 years, and tightened what the company calls STRC’s BTC Credit, a separate proprietary metric describing the preferred stock’s coverage relative to Strategy’s bitcoin holdings, by 10 basis points.

How Much Bitcoin-Sale Capacity Is Left

Strategy adopted its Digital Credit Capital Framework on June 29, authorizing up to $1.25 billion in bitcoin sales to fund the reserve, dividends, and buybacks, alongside separate $1 billion repurchase programs for STRC and MSTR.

As of August 9, $785.2 million of preferred-stock repurchase capacity and $1.0 billion of MSTR repurchase capacity remained available, alongside $22.04 billion in MSTR ATM capacity and a combined $25.2 billion across the four preferred-stock ATM programs. How much of the $1.25 billion bitcoin-sale authorization itself has already been used isn’t disclosed in this filing.

Historically, Strategy’s reported Bitcoin sale prices have remained below its average acquisition cost, with sales averaging approximately $60,201 per BTC on July 6, $63,957 on August 3, and $64,262 on August 10, versus an average purchase price of $75,385 as of August 9.