Strategy Inc. Sells 1,690 Bitcoin to Stabilize High-Yield Preferred Stock
The company liquidated $108.6 million in BTC to repurchase STRC shares and defend its $100 par value.
Strategy Inc. liquidated a significant portion of its Bitcoin treasury in August 2026 to prevent a price collapse of its high-yield preferred stock. The move underscores the precarious balance the company maintains between its digital asset holdings and its complex corporate debt obligations.
Between August 3 and August 9, 2026, Strategy Inc. sold 1,690 Bitcoin for a total of $108.6 million. The company realized an average price of $64,262 per coin. These proceeds, along with the sale of millions of common shares, were used specifically to repurchase its "Stretch" (STRC) preferred shares in an effort to drive the market price back toward its intended $100 par value.
The STRC Capital Structure
STRC is a variable-rate perpetual preferred stock designed to maintain a stable valuation around $100. To attract investors, the instrument offers a high 12% annual cash dividend, which is distributed semi-monthly. However, the stability of the stock has come under severe pressure. On June 17, 2026, STRC closed at an all-time low of $89, signaling growing investor concern over the company's financing risks and the volatility of its underlying assets.
Market Implications
This strategy reveals the inherent risks of using Bitcoin as the primary collateral for high-yield financial instruments. By selling BTC to support the STRC price, Strategy Inc. has created a potential feedback loop. When the company is forced to liquidate Bitcoin to defend its stock price, it can exert downward pressure on the broader Bitcoin market, which in turn may further destabilize the company's balance sheet.
Future Outlook
Investors are now watching whether Strategy Inc. can maintain the STRC par value without further eroding its Bitcoin treasury. While the August repurchases were intended to stabilize the preferred stock, the company's reliance on asset liquidation to meet capital structure requirements remains a point of contention. It remains to be seen if the company will pivot its financing strategy or continue to lean on its BTC holdings to satisfy the demands of its preferred shareholders. This cycle of liquidation to support equity value suggests a fragile equilibrium that may not be sustainable if Bitcoin prices enter a prolonged downturn, potentially forcing more aggressive sales to maintain the 12% dividend payments and par value stability.