Strategy (MSTR) stock falls as company sells $216M worth of Bitcoin

Strategy MSTR (formerly known as Microstrategy), the largest corporate holder of Bitcoin, disclosed on Monday that it sold 3,588 Bitcoins for approximately $216 million (approx. ₹20.3 billion) last week.

The sale was part of a newly introduced treasury framework designed to support preferred stock obligations and strengthen its cash reserves.

The software company sold 1,363 Bitcoins between June 29 and June 30 for $80.8 million (approx. ₹7.6 billion) at an average price of $59,256 per Bitcoin.

It then sold another 2,225 Bitcoin between July 1 and July 5 for $135.2 million (approx. ₹12.7 billion) at an average price of $60,773 per Bitcoin, according to an SEC filing.

The sales reduce Strategy's total holdings to 843,775 Bitcoin.

According to Executive Chairman Michael Saylor, the company acquired those holdings at an average purchase price of $74,476 per Bitcoin, representing a total cost of about $63.7 billion (approx. ₹6 trillion), including fees and expenses.

Strategy stock fell 2% in trading on Monday after the announcement.

Strategy adopts new Bitcoin treasury framework

The Bitcoin sale follows Strategy's June 29 announcement of its Digital Credit Capital Framework, a financial restructuring aimed at strengthening the company's balance sheet and reassuring investors.

According to the filing, proceeds from the Bitcoin sales were used to fund distributions on preferred stock and replenish part of the company's US dollar reserve, which stood at $2.6 billion (approx. ₹239.7 billion) as of July 5.

Under the new policy, the reserve can only be used to pay preferred stock dividends and interest payments and must be sufficient to cover at least 12 months of those obligations.

The company also introduced a BTC Monetization Program that allows it to sell up to $1.3 billion (approx. ₹117.5 billion) worth of Bitcoin to support the reserve, fund preferred stock dividends and interest payments, or repurchase digital credit securities and common stock.

As of July 5, none of that capacity had been used beyond the latest sales.

Strategy also authorized separate $1 billion (approx. ₹94 billion) repurchase programs for digital credit securities and Class A common stock.

Quarterly losses reflect weaker Bitcoin prices

In its second-quarter financial update, Strategy reported an $8.3 billion (approx. ₹781.9 billion) loss on digital assets, consisting of an $8.3 billion (approx. ₹781 billion) unrealized loss and a $0.9 million realized loss.

The company said the market value of its Bitcoin holdings fell below their purchase cost at the end of the quarter, prompting it to fully offset the related deferred tax benefit with a valuation allowance.

Based on current prices, Strategy's Bitcoin holdings are valued at roughly $52.3 billion (approx. ₹4.9 trillion).

The company controls more than 4% of Bitcoin's maximum supply of 21 million coins.

Bitcoin fell around 2% following the filing, while Strategy shares declined 2% in trading after closing 7.9% higher on Thursday. Robinhood Markets and Coinbase Global each rose 3% and 1% respectively.

Analysts assess impact of Bitcoin sales

In a social media post, Saylor said Bitcoin's next phase of growth would be driven less by protocol changes and halving cycles and more by institutional capital, credit markets and financial infrastructure.

The company's decision to formalize Bitcoin sales drew mixed reactions from analysts.

JPMorgan said the policy introduces "avoidable two-way risk" because Strategy could now become both a buyer and seller of Bitcoin.

Bernstein, however, said before the latest disclosure that Strategy was unlikely to face forced Bitcoin sales, citing its liquidity position and reserve coverage.

The firm noted that Strategy has accumulated about 175,000 Bitcoin for roughly $14 billion (approx. ₹1.3 trillion) so far in 2026 and maintained its $150,000 year-end Bitcoin price target.

Benchmark reiterated its Buy rating on Strategy with a $570 price target following the Digital Credit Capital Framework announcement, while TD Cowen lowered its price target to $260 from $400, citing a weaker Bitcoin price outlook.