Strategy, the Bitcoin treasury company chaired by Michael Saylor, disclosed the sale of 1,638 bitcoin last week for approximately $104.7 million. The transaction, completed between July 27 and August 2 at an average price of $63,957 per coin, reduced the firm’s total holdings to 842,138 BTC.

According to an SEC filing, the proceeds supported payments of distributions on preferred stock and the repurchase of STRC shares. Strategy allocated $52.4 million toward preferred stock dividends and $52.3 million to buy back 912,143 to 914,143 STRC shares for $81.2 million. This marked the second consecutive week of STRC repurchases as the preferred shares continued trading below their $100 par value.

Balance Sheet Adjustments and Cash Buildup

Alongside the bitcoin sale, Strategy sold more than 3 million shares of its common stock for roughly $290 million. A portion of those proceeds, combined with the bitcoin sale, lifted the company’s USD reserve by $250 million to $4 billion. The firm noted that the reserve figure includes expected cash from shares sold under its at-the-market program that had not yet settled.

The latest moves follow a five-week pause in bitcoin purchases. Strategy’s last reported acquisition occurred on June 22, when it bought 520 BTC. Prior to that pause, the company had maintained a pattern of regular weekly additions. Its current holdings, acquired at an average cost of $75,419 per bitcoin for a total outlay of about $63.5 billion, carry an unrealized paper loss of roughly $10.9 billion at recent prices near $62,400 to $63,000.

Saylor addressed questions about the sale by distinguishing his personal holdings from the company’s capital management. He stated that Strategy has disclosed since 2020 that it may buy or sell bitcoin to manage capital needs, and that the firm’s long-term conviction in the asset remains unchanged.

New Focus on the 200-Week Moving Average

In a separate development, Strategy began publicly tracking bitcoin’s 200-week moving average and the premium or discount to that level on its website. Saylor announced the addition, noting that since the metric became available, bitcoin has traded above the average 92 percent of the time and currently sits almost exactly on the line.

The 200-week simple moving average, which smooths closing prices over roughly four years, stood near $63,770. Bitcoin traded around $62,500 to $63,000 in the period surrounding the announcement, placing it at a slight discount. The indicator has historically marked areas of strong support during prior market downturns, including those in 2015, 2018 and 2022.

Saylor had previously described the 200-week average during the company’s second-quarter earnings discussion as a meaningful long-term signal. Adding a live tracker allows shareholders and market participants to monitor the level in real time.

Mixed Signals on Future Purchases

On the Sunday before the sale disclosure, Saylor posted a bitcoin acquisition chart with the caption “Bitcoin Drive engaged.” The message, consistent with past posts that often preceded purchase announcements, prompted speculation that Strategy might resume buying after the five-week pause. On-chain data also showed a wallet linked to the company moving 299.84 BTC, a pattern that had appeared ahead of earlier sales.

Strategy’s second-quarter results showed a swing to an $8.2 billion net loss, driven largely by unrealized losses on bitcoin holdings, compared with a substantial profit in the year-earlier period. The company increased its bitcoin holdings by 11 percent during the quarter before beginning limited sales.

Analysts at firms including TD Cowen and Benchmark have maintained positive ratings on the stock while noting that returning STRC closer to par value ranks among management’s near-term priorities. Strategy’s common shares have declined sharply from 2025 peaks and traded near $93 to $95 around the latest filings.

Bitcoin’s price remained under pressure in the immediate aftermath of the disclosure, with some market commentary linking broader softness to delays surrounding pending digital asset legislation. Strategy continues to hold a position equivalent to roughly 4 percent of bitcoin’s maximum supply under its revised capital framework, which prioritizes preferred stock obligations and allows selective monetization of bitcoin holdings when required.