Strategy sells Bitcoin, logs $102m loss for liquidity

Strategy said it has realized more than $102 million in losses from Bitcoin sales in 2026, after selling coins below its average cost basis of about $75,400 per coin. The company described the transactions as part of a liquidity plan aimed at meeting near-term cash needs tied to preferred-stock dividends and share repurchases.

Officials said the divestments are intended to help fund roughly $1.2 billion per year in preferred dividend obligations, alongside buybacks. Strategy framed the move as a shift toward converting part of its treasury holdings into cash when necessary, rather than relying solely on existing cash balances.

Preferred dividends and buybacks drive the liquidity plan Preferred dividends and buybacks drive the liquidity plan In its update In its update, Strategy linked Bitcoin sales directly to its preferred-stock dividend commitments and repurchase activity. Management said the company’s approach increasingly depends on generating liquidity from treasury assets to meet near-term capital requirements. The company also reported a sharp change in how long its current cash levels could cover dividend obligations. Management said coverage has fallen from around seven years to roughly 14 months, and presented that change as part of the rationale for leaning more heavily on asset monetization. Bitcoin exposure remains large despite divestments Strategy said it continues to have significant exposure to Bitcoin even after the sales. Based on current estimates referenced by the company, it holds approximately 840,000 BTC, leaving the balance sheet highly sensitive to Bitcoin price moves. Those same estimates put unrealized losses on the Those same estimates put unrealized losses on the position at about $10.6 billion at the time of the update. The disclosure highlighted the gap between the firm’s cost basis and the market valuations it referenced when reporting the unrealized figure. Board authorization allows up to $1.25bn in potential sales Management said the board has authorized up to $1.25 billion in total sales. The company described the authorization as preserving flexibility to raise funds through disposals if preferred dividends and repurchase activity continue at the current scale. Alongside the divestments Alongside the divestments, Strategy said it is also making smaller, parallel Bitcoin purchases. It did not characterize those purchases as offsetting disposals dollar-for-dollar, and positioned the overall program as one where liquidity is increasingly sourced from treasury assets.

Strategy added that its approach has drawn heightened institutional scrutiny, with attention on whether the liquidity plan is sustainable while preferred dividends and repurchases require funding and the company’s primary treasury asset remains volatile. Management said additional actions could be taken under the existing authorization, but it did not provide details on timing, pace, or size of any further sales.