Strategy Sells 1,638 BTC in Its Second Monetization Step

Strategy sold 1,638 BTC for $104.73 million over the past week at an average price of $63,957, the company disclosed on Monday, cutting its holdings to 842,138 BTC. It is the second monetization step disclosed since the program was set up in June, and it was executed well below what the coin cost: the remaining stack is carried at $63.51 billion, an average of $75,419 a coin. Alongside the sale, Strategy repurchased 912,143 STRC preferred shares for $81.2 million and raised $290.6 million by issuing 3.01 million MSTR shares, lifting its dollar reserve by $250 million to $4 billion. MSTR traded 1.9% lower in the pre-market. Bitcoin sat at $62,400 as the disclosure landed early in the New York session.

The sale: 1,638 BTC at an average of $63,957

The size is modest against the balance sheet, and the timing is pointed. An average execution of $63,957 sits close to where bitcoin traded across the week, which suggests coin sold into the market as it came rather than dumped at a single level. The count itself is not settled. Coinpaper reported the sale as 1,637 BTC; every other outlet covering the filing put it at 1,638, and we could not reconcile one figure against the other. Either way, the proceeds were a rounding error next to the holdings, and the more telling number is what the sale was paired with on the funding side.

A stack of 842,138 BTC carried at $75,419

After the sale the company holds 842,138 BTC against a cost basis of $63.51 billion, an average purchase price of $75,419 per coin. Every coin in the stack is carried above where the market traded on the day. The gap is the same one behind the $8.2 billion second-quarter loss the company reported at the end of July. Selling at $63,957 crystallizes a piece of that gap without closing it: a sale made below the average cost leaves that average unchanged, so the mark-to-market position gets no relief from this transaction. What it does produce is dollars, and dollars are the point.

Raising $290.6 million, retiring $81.2 million

The same disclosure shows money moving in both directions. Strategy issued 3.01 million MSTR shares for $290.6 million and used $81.2 million to buy back 912,143 STRC preferred shares. STRC is a preferred instrument with a stated value of $100 per share; it traded at a six-week high near $92 on the day, so the repurchases retired an obligation for less than face value. Read together, the actions describe a company managing a dollar liability stack, not accumulating an asset. That shift began with the pause in buying and the dollar reserve built through July.

A $4 billion reserve and 28 months of coverage

The dollar reserve rose $250 million to $4 billion, which the company described as 28 months of coverage for its preferred-stock dividends. That is the metric the monetization program exists to serve, and it is now the clearest way to read the company week to week: coverage extends, and the bitcoin position shrinks slightly to help extend it. How much further the program runs is open. The company has not said what reserve level it considers sufficient, or whether future coverage comes from equity issuance or from further sales. Nor has it said what happens to the pace if bitcoin stays below the $75,419 average at which the stack is carried. Each weekly disclosure now answers a little of that.