In the latest Bitcoin development, Strategy kept its Bitcoin holdings unchanged at 840,447 BTC for the week ending Aug. 16, according to a Form 8-K filed with the U.S. Securities and Exchange Commission. At the same time, its dollar reserve expanded to $4.8 billion.
The bigger concern is not whether Strategy still holds Bitcoin—it does, with an average acquisition cost of $75,385 per BTC. Instead, investors are questioning whether Bitcoin can withstand selling pressure without Strategy’s consistent buying activity, which has become an important source of market demand.
Strategy Pauses Bitcoin Purchases
Strategy reported no Bitcoin purchases or sales from Aug. 10 through Aug. 16. The pause followed the previous week’s sale of 1,690 BTC for $108.6 million, with the proceeds directed toward preferred-stock obligations instead of increasing its Bitcoin position.
During the latest week, Strategy raised $333.7 million by selling 3,458,866 MSTR shares through its at-the-market offering rather than using capital to purchase more BTC.
The company allocated $149.1 million of the proceeds to its USD reserve, used $132.2 million to repurchase 1,388,720 STRC preferred shares and spent another $52.4 million on preferred dividends. Executive Chairman Michael Saylor described the approach on Aug. 17 as an effort to strengthen Strategy’s financial flexibility rather than expand its Bitcoin holdings.
Strategy established the dollar reserve on June 29 through its Digital Credit Capital Framework, initially funding it with $2.55 billion. The reserve has since climbed to $4.8 billion in roughly seven weeks. Its primary purpose is to cover preferred dividends and debt interest, providing the company with a liquidity cushion separate from its Bitcoin treasury.
Bitcoin Loses a Reliable Source of Demand
The latest filing highlights a notable shift in Strategy’s capital deployment. Rather than putting every available dollar toward Bitcoin, the company is raising equity, supporting its STRC preferred shares near $99–$100 and increasing its cash reserves.
Still, there is no indication that Strategy has abandoned its Bitcoin-focused treasury strategy. Its 840,447 BTC holdings remain among the largest corporate Bitcoin reserves globally. The company also retains $653 million in STRC repurchase capacity and has an additional $1 billion authorization for MSTR buybacks.
For Bitcoin traders, the distinction is significant. Strategy’s aggressive accumulation had effectively trained investors to expect the company to provide demand during market pullbacks. With that buying pressure currently absent, Bitcoin has lost a predictable source of support that was less dependent on retail sentiment or ETF activity.
Strategy’s Cost Basis Creates Another Challenge
Strategy’s $63.36 billion investment in Bitcoin puts its average acquisition price at $75,385 per coin, considerably above Bitcoin’s price of roughly $64,268 at the time of the report.
Saylor has also pointed out that STRC gained 9% over the year through Aug. 14, while Bitcoin declined 47%. The contrasting performance helps explain why Strategy is concentrating on supporting its preferred-stock obligations instead of immediately returning to Bitcoin accumulation.
The company’s high average cost could also affect its future buying decisions. Purchasing BTC at current levels while MSTR trades below its net asset value could increase shareholder dilution without generating the same per-share Bitcoin gains that were possible when the stock traded at a premium.
Bitcoin’s Next Support Test
With Strategy no longer providing its regular Bitcoin bid, short-term BTC performance could become increasingly dependent on ETF flows, derivatives activity and genuine spot-market demand.
That means traders may need to monitor key technical support levels more closely. Without Strategy stepping in as a consistent buyer, a break below major support could potentially lead to a deeper decline.
Strategy also faces an important MSCI review. Feedback is expected by Sept. 30, followed by a decision around Oct. 16, ahead of the November index rebalance.
An exclusion of MSTR from global equity indexes could trigger additional selling from passive funds, adding another layer of pressure while Strategy remains on the sidelines as a Bitcoin buyer. Such an outcome could also test whether the company’s $4.8 billion reserve is sufficient to provide meaningful financial protection.
If Strategy resumes Bitcoin purchases after addressing its STRC obligations, the current pause may ultimately prove to be a temporary adjustment in capital allocation.
But if the buying freeze continues into the fall and is followed by an unfavorable MSCI decision, Bitcoin could face greater volatility as the market adjusts to operating without one of its most predictable corporate sources of BTC demand.
