MarketsMarket Turmoil: Saylor's Bitcoin Strategy Leads to Major Losses
Initially, there were minor bitcoin sales, followed by the acquisition of several thousand BTC, and now, the recent liquidation of thousands of BTC. What's unfolding at Strategy?
By Helene Braun|Edited by Stephen AlpherUpdated Jul 6, 2026, 3:49 p.m. Published Jul 6, 2026, 3:47 p.m. 2 min readMake preferred on
SummaryShow
- Strategy revealed this morning that it sold 3,588 BTC just days after acquiring 3,657 BTC at significantly higher prices.
- The sale of 32 bitcoins in late May triggered a sharp decline in crypto markets, causing BTC to plummet from nearly $74,000 to below $58,000 last week.
- The firm recorded a staggering $8.32 billion loss on its bitcoin investments for the second quarter.
Strategy's (MSTR) recent activities indicate a company struggling to adapt as the bear market for bitcoin, currently at BTC$63,420.53, raises concerns about its overall strategy.
The dramatic drop in bitcoin value, from $74,000 in late May—when Strategy sold a small quantity of 32 bitcoins—to below $58,000 last week, illustrates the volatility. A brief recovery to approximately $64,000 over the July 4 weekend was halted by the sale of 3,588 bitcoins. During this period, Michael Saylor and his team had purchased 3,657 bitcoins at much higher prices.
This sequence left Strategy with a net gain of just 69 bitcoins, despite investing around $20 million more in capital, as noted by KALEO on X. Since the company sold coins for less than the prices it had recently paid, the average cost of these additional holdings exceeded $289,000 per bitcoin, KALEO pointed out.
The latest move indicates that Strategy is willing to take significant steps to safeguard the dividends on its high-yield preferred stock STRC (currently at 12% following a recent 50 basis point increase).
Interestingly, while BTC and MSTR (Strategy's common stock) declined on Monday, STRC rebounded from a low of below $75, increasing by another 2.1% to just under $90.
Strategy now owns 843,775 bitcoins, purchased at an average cost of $75,476, solidifying its status as the largest publicly traded corporate holder of the cryptocurrency.
In conjunction with today's announcement of substantial bitcoin sales, the company also reported an $8.32 billion loss on its bitcoin holdings in Q2, as the price dropped from around $68,000 on April 1 to approximately $60,000 by the end of June.
Looking Ahead
With the recent fluctuations in strategy, predicting the future actions of the company is challenging. While it’s a significant assumption, if BTC, MSTR, and STRC prices stabilize, it seems likely that further bitcoin purchases are off the table for the foreseeable future.
Regarding sales, Strategy currently has cash reserves sufficient for over 17 months of dividend payments. In the realm of preferred stock investors, companies with 18 months or more of coverage are generally viewed favorably. Although more bitcoin sales may occur, they will likely need to be limited in size in the coming weeks.
This means that while there might not be buying pressure from Strategy, the selling pressure may also be alleviated.
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