Strategy Sells Bitcoin Below Cost Again and Steers $650 Million of Share Sales Into Cash

Strategy sold 1,690 bitcoin for $108.6 million between Aug. 3 and Aug. 9, its second straight week of selling, according to a Form 8-K the company filed Monday. It sold at an average of $64,262 a coin, roughly $11,000 under its $75,385 average cost basis, a realized loss of about $18.8 million.

Equity sales more than doubled over the same stretch, bringing in $653.1 million from 6,585,682 MSTR shares, against the $290.6 million it raised the week before. Almost all of it, $650 million, went into the company’s USD Reserve. The reserve now holds $4.65 billion, up from $4.0 billion a week earlier. Meanwhile, the remaining $3.1 million from the common stock sale went to its cash balance.

Strategy put the bitcoin proceeds into retiring its own credit, repurchasing 1,152,020 STRC shares for the same $108.6 million under the Digital Credit Securities Repurchase Program it announced on June 29. That works out to about $94.27 a share, below the $100 par value on the preferred and under STRC’s $95.01 close on Friday. About $785.2 million of preferred buyback capacity remains and an untouched $1 billion for common stock, the company said.

Strategy’s bitcoin holdings now stand at 840,447 BTC, bought for $63.36 billion. With bitcoin near $64,975 on Monday, the position is roughly $8.7 billion underwater.

Strategy has now sold 3,328 bitcoin for about $213 million across two weeks, following a $216 million sale of 3,588 bitcoin from June 29 to July 5 that opened the company’s financing overhaul. Executive Chairman Michael Saylor framed the shift in May as accumulation rather than retreat. “Even if we were to sell one bitcoin, we’d be buying 10 to 20 more bitcoin,” he said at the time.

Related Listen: Strategy Sells $216M in Bitcoin. Is Saylor a Buyer or a Seller Now?: Bits + Bips

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