Strategy sold bitcoin to raise cash, but its giant pile of digital coins is still worth less than what it paid.
Between June 29 and June 30, it sold 1,363 bitcoins at an average price of $59,256 each, raising $80.8 million. Then from July 1 to July 5, it sold another 2,225 bitcoins at an average price of $60,773 each, raising $135.2 million.
The company also recorded a $8.32 billion loss on digital assets in its Q2 financial update, including an $8.31 billion unrealized loss and $0.9 million realized loss.
Strategy now has a formal policy to both buy and sell bitcoin. Under the BTC Monetization Program, Strategy can sell up to $1.25 billion in additional bitcoin to bolster its USD reserve, cover preferred stock dividends and interest, or buy back digital credit securities and common stock. Additionally, the board authorized a $1 billion program to repurchase digital credit securities (STRC, STRF, STRD, STRK), prioritizing STRC, and a separate $1 billion buyback of Class A common stock - neither of which will draw from the USD reserve.
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JPMorgan analysts said this formalized sale policy introduces "avoidable two-way risk" into crypto markets. On Monday, Bernstein analysts said Strategy's financial position makes a forced sale improbable.
Bitcoin dropped about 2% on Monday after the filing. Strategy's own stock, MSTR, fell 1.9% in pre-market trading. MSTR shares closed Thursday at $100.77, gaining 21.1% for the week after the Digital Credit Capital Framework announcement, though the stock is still down 73.7% over the trailing twelve months.
Strategy remains the largest corporate bitcoin holder by a wide margin. Tether-backed Twenty One holds 43,514 bitcoins.
Japan's Metaplanet holds 43,000. Mining company MARA holds 36,303. And the Bitcoin Standard Treasury Company, backed by Adam Back and Cantor Fitzgerald, holds 30,021.
In total, 197 public companies have adopted some form of bitcoin acquisition model, according to Bitcoin Treasuries data.
Michael Saylor, Strategy's co-founder and executive chairman, posted on X: "Bitcoin is digital energy." He also provided the data showing the average purchase price per bitcoin for Strategy's entire holdings is $74,476, while the current market price is well below that.
Benchmark analysts reiterated a Buy rating on Strategy with a $570 price target. But TD Cowen cut its price target to $260 from $400, citing a lower bitcoin price forecast.
Investors will watch whether Strategy continues selling bitcoin under its new monetization program, and how the market digests that risk. Bitcoin's price action in the coming weeks will also determine whether Strategy's $11.4 billion paper loss widens or shrinks. For now, the company sits on 843,775 bitcoins and a freshly rebuilt cash reserve.
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