Strategy Sells $102 Million in Bitcoin Amid Market Decline
Strategy, formerly MicroStrategy, has been selling its Bitcoin holdings for four consecutive weeks. The company's CEO, Phong Le, described Strategy as 'the central bank of Bitcoin' in a recent filing. This marks a significant shift from the company's previous stance on holding Bitcoin as a permanent asset.
The sales follow from the financial engineering that funded the accumulation of over 843,000 BTC between 2020 and 2025. The company issued convertible notes, preferred stock, and at-the-market equity offerings to fund its purchases, creating a 'flywheel' effect where the appreciation in Bitcoin's value supported the company's stock price and allowed for further issuances.
However, when Bitcoin's price declined from $108,000 in January 2026 to $63,800 in August, the flywheel reversed. The value of Strategy's holdings declined by approximately $37 billion, making new equity issuances more dilutive. The company's convertible note holders began to calculate conversion values that made the notes less attractive as equity substitutes.
The $218 million sale to cover preferred stock dividends is a significant transaction, crossing a threshold that CEO Michael Saylor publicly committed to avoiding. It signals to the market that Strategy's Bitcoin holdings are no longer a one-way bet but a balance sheet asset subject to liquidity demands.