Strategy sold approximately $466.7 million worth of MSTR shares between July 6 and July 12, according to an 8-K filing with the Securities and Exchange Commission disclosed on Monday. The bitcoin treasury company sold 4,818,781 MSTR shares during the period but did not buy or sell any bitcoin. Proceeds from the MSTR sales were used to increase Strategy's USD reserve by $450 million to $3 billion as of July 12. The sale reflects Strategy's shift under its new Digital Credit Capital Framework, which restricts USD reserves to preferred stock dividends and interest payments while authorizing up to $1.25 billion in bitcoin sales to fund reserves, dividends, and securities repurchases.
Strategy Maintains 843,775 BTC Holdings Despite $467M Share Sale
Strategy retained its bitcoin holdings at 843,775 BTC following the share sale, according to co-founder and executive chairman Michael Saylor. The holdings were bought at an average price of $75,476 per bitcoin for a total cost of around $63.7 billion, including fees and expenses. The company's bitcoin position is equivalent to around 4% of bitcoin's 21 million supply cap but carries approximately $10.7 billion of paper losses at current prices. Bitcoin traded flat at around $63,000 on Monday immediately following the filing. MSTR shares are down 2.6% in pre-market trading.
Michael Saylor Posts Cryptic Chart Following Previous Bitcoin Sale
Strategy co-founder and Executive Chairman Michael Saylor posted a Strategy bitcoin tracker chart to X on Sunday with the caption "Orange dots tell only part of the story." Saylor's regular Sunday posts have typically been used to telegraph an acquisition announcement in advance, with recent captions such as "A good time to add more dots" and "Looks better with more dots" preceding purchase disclosures. However, the messages have become more cryptic in recent weeks as the firm's strategy has shifted. A June 28 post reading "We're gonna need more charts" was followed by a new capital framework rather than a buy, and a July 5 post preceded the sale of 3,588 BTC for $216 million, the largest sale in Strategy's history.
Digital Credit Capital Framework Authorizes $1 Billion Repurchase Program
Under its new Digital Credit Capital Framework, Strategy restricted its USD reserve to preferred stock dividends and interest payments. The firm authorized a $1 billion repurchase program for its digital credit securities, initially prioritizing STRC. Strategy also adopted a flexible monthly STRC dividend policy, noting the dividend will not automatically increase if STRC trades below its $100 par value. Separately, Strategy approved a $1 billion common stock buyback and a BTC Monetization Program allowing up to $1.25 billion in bitcoin sales to fund its reserve, dividends, interest, and securities repurchases. VanEck's Matthew Sigel noted that Strategy's recent 3,588 BTC sale did not count against its new BTC Monetization Program.
Analysts View Share Sale as Liquidity Management, Not Solvency Issue
Gabe Selby, Head of Research at Payward subsidiary CF Benchmarks, said Strategy's near-term ability to meet its payment obligations is not in question. The firm's annual financing costs amount to about 3.4% of the value of its bitcoin holdings, while its cash reserves cover around 17.4 months of those costs, or 25.9 months including authorized reserve-building capacity. Selby stated, "What makes the latest sale relevant is the expanded capital structure created by STRC, with a limited sale supporting its liquidity." On Friday, Standard Chartered maintained its end-2026 bitcoin forecast of $100,000, arguing that Strategy's shift from a "never sell bitcoin" posture to using BTC as collateral for its preferred stock is a communication problem rather than a solvency one. Analysts at Grayscale said the stronger financing position could help bitcoin find a more durable price bottom by reducing tail risks related to Strategy. Strategy's stock fell 6.5% overall last week, closing on Friday at $94.64. The company's enterprise mNAV stands at 1.03.
FAQ
What did Strategy sell between July 6 and July 12?
Strategy sold 4,818,781 MSTR shares worth approximately $466.7 million between July 6 and July 12, according to an 8-K filing with the Securities and Exchange Commission disclosed on Monday. The company did not buy or sell any bitcoin during this period.
Why did Strategy increase its USD reserve to $3 billion?
Strategy used proceeds from the MSTR share sales to boost its USD reserve by $450 million to $3 billion as of July 12. Under its new Digital Credit Capital Framework, the USD reserve is restricted to preferred stock dividends and interest payments, with the firm authorizing up to $1.25 billion in bitcoin sales to fund reserves, dividends, and securities repurchases.
How much bitcoin does Strategy currently hold?
Strategy retained its bitcoin holdings at 843,775 BTC, bought at an average price of $75,476 per bitcoin for a total cost of around $63.7 billion, including fees and expenses, according to co-founder and executive chairman Michael Saylor. The holdings carry approximately $10.7 billion of paper losses at current prices.
