Strategy MSTR: Bitcoin Sales Fund $1.25B Stock Buyback in Major Turnaround

Strategy Inc. (NASDAQ: MSTR), the corporate Bitcoin treasury pioneer formerly known as MicroStrategy, announced a fundamental shift in its capital strategy on Monday. The company unveiled a $2 billion stock buyback program paired with plans to sell up to $1.25 billion of its Bitcoin holdings to fund share repurchases and cover dividend obligations on its STRC perpetual preferred stock. The move marks a dramatic reversal from the playbook that built Strategy's 843,738 BTC position — a treasury acquired at an average cost of roughly $73,500 per coin through years of at-the-market equity offerings and convertible debt issuance.

What Happened

Strategy's new Digital Credit Capital Framework authorizes the sale of Bitcoin to finance a $1 billion common stock buyback and a $1 billion preferred stock buyback. Concurrently, the company completed a $1.5 billion debt repurchase, retiring convertible notes for $1.38 billion in cash. The STRC Series A Perpetual Preferred Stock — now targeting a minimum 12% yield with a June 30 ex-dividend date — receives dedicated backing from Bitcoin sale proceeds. Strategy reported a 13.3% BTC Yield year-to-date, a metric measuring Bitcoin accretion per share. The treasury's 843,738 BTC carry a total cost basis of approximately $63.9 billion against a current market value near $50 billion at Bitcoin's $59,000 level.

Why It Matters

The shift reframes Strategy from a pure-play Bitcoin accumulation vehicle into a capital-recycling entity. By monetizing BTC gains to shrink the float, management signals confidence that the treasury's unrealized profits can generate shareholder returns without perpetual dilution. The 13.3% BTC Yield metric — measuring Bitcoin accretion per share — provides a new benchmark for evaluating the strategy's efficiency. For the official announcement, see The Wall Street Journal. For the broader market, Strategy's pivot tests whether corporate Bitcoin treasuries can transition from growth mode to income mode, a question that will grow louder as more firms add BTC to balance sheets.

What's Next

August 2026 Update: Sales Executed, Q2 Loss Posted, Stock Off the Lows

The sales happened fast. By July 6, Strategy had dramatically upped the pace of Bitcoin sales, raising about USD 216 million at an average of roughly USD 60,000 per coin, per CoinDesk — within the USD 1.25 billion authorization. Holdings then stood at 843,775 BTC acquired for approximately USD 63.69 billion.

Q2 2026 results (July 30): Strategy reported a net loss of USD 8.22 billion, driven almost entirely by an USD 8.32 billion unrealized markdown on its Bitcoin holdings as BTC slid toward USD 59,000. Even so, the company grew holdings 11% to about 846,000 BTC, cut convertible debt 18% to USD 6.7 billion, and increased its USD Reserve by 12%.

The stock has stabilised — barely. MSTR hit a 52-week low of USD 81.81 on June 26 and closed July at USD 93.28, still down roughly 77% from its USD 414.36 high of August 2025. STRC's variable annualized dividend was set at 12% for record dates beginning in July 2026, with the shift to semi-monthly payments completed June 30.

The open question remains the one this article posed: whether corporate Bitcoin treasuries can transition from growth mode to income mode. Strategy's answer so far — sell into weakness, post an USD 8.2 billion quarterly loss, and keep buying — shows the transition is anything but clean.

For deeper coverage of the forces hitting Bitcoin-treasury stocks, see our reports on MSTR's slide to a two-year low, Bitcoin's worst month since June 2022, and the wider correction from the 2025 highs. (An earlier version of this article linked to unrelated stories, including a Ford lawsuit and a presale token; those links have been removed.)

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