Key Takeaways:
Strategy, the largest corporate Bitcoin holder, has abandoned its "never sell a single satoshi" pledge under the weight of $1.2 billion in annual preferred-dividend obligations.
Strategy realized more than $102 million in losses selling Bitcoin below its cost basis in 2026, breaking the "never sell a single satoshi" policy that anchored its treasury strategy since 2020.
The losses were compiled by CryptoQuant analysts, who tracked at least four sale operations tied to the firm's 2026 monetization program, according to data cited by Bitcoin.com News.
In the week ending Aug. 9, the company sold 1,690 Bitcoin for $108.6 million at an average of $64,262 per coin, below its blended cost basis of about $75,400. It still holds 840,447 Bitcoin, bought for a cumulative $63.36 billion, facing roughly $10.6 billion in unrealized losses. Proceeds funded the repurchase of 1,152,020 shares of its STRC preferred stock.
The sales stem from preferred-dividend obligations that have nearly quadrupled to $1.2 billion a year, cutting cash coverage to about 14 months from more than seven years. With the stock down nearly 40 percent this year to trade below net asset value, issuing new common shares would be dilutive, leaving Bitcoin sales as the cheaper funding route.
The company's preferred-dividend burden has ballooned with successive issuances of variable-rate STRC shares used to fund its Bitcoin purchases. To rebuild a 24-month cash cushion, Strategy would need $2.8 billion in reserves, nearly double its current liquid balance of about $4.65 billion. The firm swung to a net loss of $8.22 billion in the second quarter from a $14 billion profit a year earlier, hit by mark-to-market impairments on its holdings.
Strategy's shares trade between $90 and $95, roughly 40 percent below their level at the start of the year, leaving the market value below net asset value. In that discount configuration, the ATM issuance of common stock would dilute existing holders, so management has leaned on Bitcoin sales instead. The board has authorized a sales program of up to $1.25 billion, giving it room to continue if prices stay weak.
CEO Phong Le said the company adjusted strategy after institutional investors prioritized cash over Bitcoin's appreciation, and now holds $4.75 billion in reserves covering about 2.7 years of preferred dividends. If Bitcoin sustains a rally above the $75,400 breakeven, the firm could erase unrealized losses and raise capital less dilutively; prolonged stagnation would keep it on the current course.
This article is for informational purposes only and does not constitute investment advice.
