Strategy Inc. (NASDAQ: MSTR), formerly MicroStrategy, saw its shares rise 2% on Monday after the company disclosed fresh sales of Bitcoin and common stock as part of its revamped capital strategy aimed at strengthening liquidity and shoring up its balance sheet.
Led by Executive Chairman Michael Saylor, the company sold approximately 1,638 Bitcoin for about $104.7 million during the week ended Aug. 2, at an average price of $63,957 per token. This marks another step in Strategy's shift away from its long-standing Bitcoin accumulation approach toward a more flexible capital management framework introduced in late June.
Alongside the Bitcoin sale, Strategy also sold more than 3 million common shares, raising approximately $290.6 million. According to the company's filing, the proceeds were used to increase its US dollar reserve, repurchase preferred securities, and strengthen liquidity.
Expanding Cash Reserve While Buying Back Preferred Shares
The latest transactions increased Strategy's USD Reserve by $250 million to $4 billion, while also funding repurchases of its STRC preferred shares, which have been trading below par. The company repurchased approximately $81 million of STRC preferred stock as part of its broader effort to improve its capital structure. Additional proceeds from common stock sales were added to its cash balance and used to fund preferred stock distributions.
In a post on X, Saylor stated: "Strategy increased its USD Reserve by $250M and repurchased $81M of $STRC. This increased USD Duration by 57 days to 2.3 years and tightened STRC's BTC Credit by 5 bps. As of 8/2/26, we hold ₿842,138 in our BTC Reserve and $4.0B in our USD Reserve. $MSTR."
The company adopted its new Digital Credit Capital Framework earlier this year, giving management greater flexibility to monetize Bitcoin holdings, repurchase securities, and maintain liquidity while supporting preferred stock obligations. Following the latest sale, Strategy reported holding approximately 843,138 Bitcoin, valued at roughly $52.6 billion. These holdings were acquired at an average purchase price of $75,419 per Bitcoin, representing a total acquisition cost of approximately $63.5 billion including fees.
New Strategy Follows Heavy Quarterly Losses
The capital restructuring comes after Strategy reported an $8.2 billion net loss for the second quarter, largely driven by unrealized losses on its Bitcoin holdings as cryptocurrency prices weakened sharply from year-ago levels. Despite trimming its holdings, Strategy remains the world's largest corporate holder of Bitcoin, with its reserves still representing about 4% of the cryptocurrency's maximum 21 million supply.
The company has also authorized a $1 billion repurchase program for its digital credit securities, initially prioritizing STRC, while approving a separate $1 billion common stock buyback. It later expanded its Bitcoin monetization program to permit up to $5 billion in Bitcoin sales to support reserves, dividend payments, interest obligations, and security repurchases.
Analysts Maintain Bullish Outlook
Although Strategy shares have fallen sharply over the past year alongside Bitcoin's decline, several Wall Street firms continue to maintain positive ratings on the stock. Last week, TD Cowen and Benchmark both reiterated Buy ratings following the company's second-quarter results, although Benchmark lowered its price target after reducing its year-end 2026 Bitcoin price assumption. On Monday, Barclays analyst Nik Cremo also maintained a Buy rating on Strategy with a price target of $125.
Investors have also been watching broader tech and crypto sentiment, with recent moves in AI-related stocks and tech rallies influencing market dynamics. Strategy's shift toward a more balanced treasury approach could appeal to investors seeking reduced Bitcoin volatility exposure, though the company's fortunes remain closely tied to cryptocurrency prices.
This article is for informational purposes only and does not constitute financial advice.
