Strategy Dumps 1,638 BTC Below Cost Basis.

[Gragebox]

Source Code: https://finance.yahoo.com/markets/crypto/articles/bitcoin-news-today-strategy-dumps-105714776.html

1. Strategy recently sold 1,638 BTC for approximately $105 million.
2. The sale was reportedly below Strategy’s average Bitcoin purchase price.
3. The proceeds were used mainly to support its preferred-stock strategy rather than buying more Bitcoin.

Given that Strategy has made its reputation with massive Bitcoin buying; a sale of 1,638 Bitcoin for around $105M warrants a close watch. The sale purportedly occurred below average cost Basis and proceeds are being used to redeem preferred shares, instead of buying Bitcoin. The more significant issue here however, not only with the volume of BTC, but with the strategy itself; we haven't seen similar large scale selling from the company before this as they've always been an incredibly bullish holder.

Continued sales of this type, and extended pauses in additional purchases could signal problems for strategy with liquidity, capital structure, and confidence in Bitcoin at the current market level.

Obviously I don't think a sale of this size is going to signal a long term bitcoin Bear cycle. However it will be an indicator to watch as well if continued selling proceeds and we see this pattern from other large shareholders in corporate America. What has occurred has occurred in terms of the Bitcoin now outside of their control. For me, what this sale has provoked further questions are is this a case of short-term liquidity management, or we’ve witnessed a fundamental policy shift in the corporate Bitcoin accumulation policy?

[Accardo]

This decision is a big mistake, the pressure is probably from his company, accepting to sell below the $75,419+ average buying rate is doing MicroStrategy no good, the company will be recording about $11,419 in losses per btc if calculated at $64,000 price rate, total loss would be about 18 million dollars for 1,638 btc sold. This is what you get when people who do not fully understand bitcoin, indirectly invests into it, little harsh changes in bitcoin price feels so dangerous that all the parties involved including the lenders would be clamoring for their money.

[Fortify]

Obviously I don't think a sale of this size is going to signal a long term bitcoin Bear cycle. However it will be an indicator to watch as well if continued selling proceeds and we see this pattern from other large shareholders in corporate America. What has occurred has occurred in terms of the Bitcoin now outside of their control. For me, what this sale has provoked further questions are is this a case of short-term liquidity management, or we’ve witnessed a fundamental policy shift in the corporate Bitcoin accumulation policy?

This looks like the beginning of the end for this company and while it has helped to grow the price of bitcoin, having that many coin centralized with one entity was almost undermining the very foundations of the world greatest crypto currency. Michael Saylor wanted this project as it made him "the king" rather than any kind of noble quest for the benefit of all bitcoin users. Now it's all starting to crumble away, which is an inevitable problem with an asset which has swung around in value so wildly in the past. If he really had sense and foresight he would have sold big chunks at the top near $125k all the way down to this point, so he could reload cheaper later on. Instead he is now in a situation of forced selling because no one will invest any more money with him as his current assets are underwater, this forced selling will keep the bitcoin price suppressed for a while.

[Cryptomultiplier]

It seems Strategy might be slipping and this isn't the first or second time they have had to sell off some BTC for reasons they best understand. This just shows that all the noise they made about holding for long term might have just been a marketing stunt to keep them relevant and more visible to the public, but I think the balance sheets think otherwise.

We can't actually tell the direction the company is moving in right now but the only thing we can do is to observe the frequency of sales of their current BTC over the next quarters, because it seems something is brewing deep down than meets the ordinary eyes.

[SUPERSAIAN]

Selling Bitcoin and buying preferred stock instead is quite remarkable and seems unusual, especially since we constantly remember the strategy when buying Bitcoin. The really interesting point here isn't that 1638 BTC were sold, but that it wasn't done as profit taking. If the goal was simply to reduce the position, it could be interpreted differently. A Bitcoin-focused company like Strategy taking a step we haven't seen before naturally deserves attention.

[Haunebu]

This is a nothing burger news implying that this has no short term impact and no long term impact(most likely) on the crypto market. They still hold over 840 grand BTC totalling billions of dollars which is why this is a small move by them IMO.

Seems that they wanted to take care of certain debt obligations and some other stuff due to which they went ahead with this move. All is well with the crypto market people.

[sunsilk]

To buy preferred shares instead of buying more BTC so why they did this? they're free to do that and I think that it's collaborated decision which is strategic for them.

What they think right now as the bear market has come, they think to earn more from those preferred shares and I think it's still part of some obligation for their investors.

They are a company for no reason and the actual business that they are in, like in analytics so they've probably got reports and records which is the best thing to do for them right now.

[arallmuus]

It seems Strategy might be slipping and this isn't the first or second time they have had to sell off some BTC for reasons

This is actually their 2nd last btc sale. The latest sale was 1690 bitcoin sold which was done after this one

Full news Here

To buy preferred shares instead of buying more BTC so why they did this? they're free to do that and I think that it's collaborated decision which is strategic for them.

As to why they need all those cash for shares buyback, this user actually summarize the latest interview

And most importantly, there was one very important point that many Bitcoiners didn’t really understand - it was only in 2026 that they realized institutional investors don’t treat liquid Bitcoin as the equivalent of dollars.

In fact all Strategy related purchased or bitcoin sale is covered on that thread as well for those that want the full and summarize version

[red4slash]

3. The proceeds were used mainly to support its preferred-stock strategy rather than buying more Bitcoin.

They say that they are maximalists from the beginning but the longer they try by doing a new system where bitcoin maximalist claims still remain but on the one hand they create a new system with shares that they multiply today.

It should be by looking at this that the followers of MSTR or Saylor realize that what they are doing is not for the sustainability of bitcoin but for their personal benefit where they want to create their own system in the existing bitcoin system.
Now they are trying to do everything so that losses can be minimized and the nonsense about maximalists that has always been their claim is no longer valid for now.

[The Cryptovator]

1. Strategy recently sold 1,638 BTC for approximately $105 million.
2. The sale was reportedly below Strategy’s average Bitcoin purchase price.
3. The proceeds were used mainly to support its preferred-stock strategy rather than buying more Bitcoin.

Probably we can’t think how Saylor is thinking. He is one of the big investors in Bitcoin, and definitely he will think bigger than us. So we may just speculate, but only he knows what the reality is. Purchasing Bitcoin doesn’t mean someone has to hold it for their lifetime. They might also sell when it’s necessary; it doesn’t matter the buy price here.

He might need to liquidate his Bitcoin if he finds a better investment opportunity, so he will definitely move on. Also, he might have a plan to accumulate more Bitcoins when it dips more. Sometimes I also sell Bitcoin at a loss and buy back when it's dipping more. We shouldn’t be afraid when this kind of sale happens; it’s part of the crypto industry.

[Coyster]

The sale purportedly occurred below average cost Basis and proceeds are being used to redeem preferred shares, instead of buying Bitcoin.

They aren't going to sell bitcoin, to buy back bitcoin, will they? Lol. This is, what, the second time they are selling bitcoin in this month of August, 2026. And if i remember correctly, it is the fourth time they are selling bitcoin since June, 2026. It is safe to say that the idea of "buying only and not selling bitcoin" is a distant memory for Strategy.

I expect the company to continue making periodic sales and the market should get used to that. They alread said they were going to sell a lot of bitcoin to boost their cash reserves, so it is not like this should come as a surprise. The thing is, they still hodl a lot of bitcoins and these sales is nothing compared to their total hodlings, and as such they still remain a big player in the bitcoin community.

[Faisal2202]

This decision is a big mistake, the pressure is probably from his company, accepting to sell below the $75,419+ average buying rate is doing MicroStrategy no good, the company will be recording about $11,419 in losses per btc if calculated at $64,000 price rate, total loss would be about 18 million dollars for 1,638 btc sold. This is what you get when people who do not fully understand bitcoin, indirectly invests into it, little harsh changes in bitcoin price feels so dangerous that all the parties involved including the lenders would be clamoring for their money.

I would not say they did not understand Bitcoin, because they invested billions, so they must have some idea what they are doing. The sale of 1,638 is nothing, because they have announced their whole plan to sell $5 billion worth of Bitcoins. They divided this amount into three parts, one for cash reserves, one for dividends, and one for interest, if I am not wrong.

So, I am not surprised with their sale, because they have already announced it and they are now just selling in parts. But still, they are selling, while Saylor is giving hints on X that he is buying.

MSTR has also said once they are out of this, they will start buying again.

[ZAINmalik75]

Whatever the reason is, why do we or should we care? I don't know what people were expecting from a centralized company or business when they were buying Bitcoins, because you can't expect them to actually keep holding forever even if they pretend to have such plans. All the companies and institutions that are getting involved with Bitcoin and are keeping their records completely public are all doing it as a business and not as a support to Bitcoin and its ecosystem, they wouldn't care a bit and move into something new if Bitcoin stops functioning tomorrow.

The retail side of the market has to become mature enough to not react to such things because that's only going to cause trouble for them and not to these institutional investors who don't care about the sentiments of the retail investors and are always ready to go against their own words. When you make a decision to make an investment, you should do it because you have knowledge about it, and you should get out of it because of the same reason as well and not because of an institutional investor doing something.

[OgNasty]

Saylor has lost his way. Coming out in favor of spam on the blockchain and now pushing digital money and digital credit… He has gone down the path they all go down. I really hope he is forced to sell a great deal of Bitcoin this cycle. Him being forced to sell a great amount and cause a bottom would be the best thing that could happen.

[goldkingcoiner]

Strategy is going downhill with their stock option BS. Saylor should be buying more Bitcoin instead of placating to the investors by selling at a loss. What a tragedy that such a promising man decided to bet against Bitcoin. Or perhaps this is all a scheme aimed towards anyone who buys his ETF?

I would not go near it with a 12 food poll, if you ask me.

[Hamza2424]

Probably we can’t think how Saylor is thinking. He is one of the big investors in Bitcoin, and definitely he will think bigger than us. So we may just speculate, but only he knows what the reality is. Purchasing Bitcoin doesn’t mean someone has to hold it for their lifetime. They might also sell when it’s necessary; it doesn’t matter the buy price here.

He might need to liquidate his Bitcoin if he finds a better investment opportunity, so he will definitely move on. Also, he might have a plan to accumulate more Bitcoins when it dips more. Sometimes I also sell Bitcoin at a loss and buy back when it's dipping more. We shouldn’t be afraid when this kind of sale happens; it’s part of the crypto industry.

Bro, this man said they won't even sell at $7k, but now they are forced, which shows OP might be right. Maybe Saylor was so excited that he forgot the reality that BTC can dump anytime in a bear market, and it can dump higher than we can imagine. But to be honest, this bear market is not that bad. Bitcoin did not dump more than 70% like earlier bear cycles.

I would not compare MSTR's sale with our sales experience because I also sell my Bitcoins sometimes, but I never made such bold statements, and I never will tell anyone to not sell their coins no matter what. And most of all, I would never tell anyone to sell their kidney but don't sell your Bitcoins haha.

He has also said a lot of things that you might know already and made himself a figure in the BTC community, and now he is dumping and thinking there won't be any feedback?

[Coyster]

What a tragedy that such a promising man decided to bet against Bitcoin.

I wouldn't say that about an institution that hodls over 800k bitcoins. It is true that they are selling bitcoins and would continue doing so, but that is because the company also has other obligations to fulfil to its investors.

Remember they also bought these bitcoins through debt and equity, which is not the best way to acquire bitcoin, but so many bitcoiners didn't complain when they were doing so. So, i don't think they should complain now that they sell bitcoin to fill up their cash reserves or to pay dividends, it is what it is.

[Cryptoprincess101]

I don't know the plans that Strategy has for their bitcoin but the constant selling shows lack of courage at a time when the market is not in a good position. What is now the essence of all these years of purchases if they can sell less than the average purchase price of all their bitcoins. They didn't sell when the price of bitcoin reached ATH at a time when they should have taken a lot of profits. I'm still in awe to see that a company we once praised of their consistent purchasing power is now gradually becoming a mess of themselves.
      This development by Strategy is really messy because investors that got motivated as a result of Strategy's consistent purchasing power in the past will now start a rethink of their decision and possibly start selling their bitcoins as well, for fear that if Strategy continues to sell, the market may crash even further.

[philipma1957]

guys please he is simply selling some btc to buy spacex fuck to the moon people this is to the red planet mars baby mars.

[Perfectbaby]

From the on set I know that the sale of 1638 Bitcoin would definitely result to market drop Even it doesn't takes effect immediately there would be changes in the market, this is a wrong move by micro strategy as I didn't believe they would be so naive to go dump such a voluminous amount of Bitcoin at the hardest time where they need to give support to the market to stand firmly.
But deu to personal reasoning and how they believe to make a move in regards to their strategy they decided to make a change, although they wanna cause chaos on the market irrespective that their influence can actually make the market to go on the wrong direction or even negatively affecting the price.