Strategy Has Sold $432 Million of Bitcoin This Year. Is the Biggest Buyer Turning Into a Seller?
Strategy Inc. just reported record profits while quietly offloading hundreds of millions in Bitcoin to cover mounting preferred stock costs. Whether the world's largest corporate Bitcoin holder is starting to shift from buyer to seller depends on numbers that tell…
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In its third-quarter report released on October 29, 2026, Strategy Inc. (NASDAQ:MSTR | MSTR Price Prediction), the largest corporate holder of Bitcoin, disclosed that it sold approximately $431.8 million worth of Bitcoin (CRYPTO:BTC) throughout 2026. This sales revenue was used to cover preferred stock dividends and to buy back its Stretch preferred shares, trading as STRC. As of October 25, Strategy Inc. still held 848,517 BTC.
Despite reporting net income of $19.53 billion, or $44.75 per diluted share, MSTR’s stock declined. Shares traded at $131.50 in premarket trading today, down 7.2%, marking a 13.5% drop for the year. Additionally, Bitcoin fell 3.3% in just 24 hours to $77,370, dropping below its lowest close in the past 30 days.
Where Did the $431.8 Million Go?
The proceeds from the Bitcoin sales were primarily allocated to two main areas. The first expense was for preferred stock dividends, which provide a fixed income stream to shareholders before common stockholders receive any dividends. This cost reached $419.6 million in Q3, significantly up from $139.9 million a year earlier, as Strategy Inc. continued issuing more preferred shares to finance its Bitcoin purchases.
The second major expense was the buybacks of STRC shares. STRC pays a generous annual dividend of 12% on a stated amount of $100, even though it’s been trading below par value. In 2026, Strategy Inc. repurchased 20,980,508 STRC shares for about $2.04 billion, averaging $97.39 per share. Currently, about $956.7 million remains under a $3.0 billion buyback authorization.
The selling rate has also increased. In its Q2 report, Strategy Inc. noted $218.4 million in Bitcoin sales year-to-date under its BTC Monetization Program, bringing the total to $431.8 million.
Record Profits Driven by Accounting Rather Than Cash
Much of the profit stemmed from accounting methods rather than real cash flow. Most operational revenue still comes from Strategy Inc.’s original enterprise analytics software business. Q3 revenue came in at $125.4 million, short of the $129.36 million consensus. Subscription revenue rose to $68.59 million from $46 million, while product license revenue fell sharply, from $17.4 million to $3.83 million, as clients shifted to cloud-based solutions.
The significant profit reported almost entirely results from fair-value accounting practices. Strategy Inc. adjusts the market value of its Bitcoin holdings each quarter, so any increase in Bitcoin prices is reflected as income on paper. In Q3, Bitcoin rose 43%, generating a $20.91 billion gain in digital assets and boosting its earnings per share (EPS) well above the expected $17.98.
Still a Net Buyer, but Bitcoin Per Share Is Declining
By count, Strategy Inc. remains a major buyer. Its Bitcoin holdings increased by 26% in 2026, with $14.33 billion spent on Bitcoin against the $431.8 million sold. However, the overall results point the other way. The company reported a negative BTC yield of (3.7)% and a decrease of (24,947) BTC for the year, so each MSTR share now holds less Bitcoin than at the start of the year, versus a 22.8% BTC yield in 2025.
This shift contradicts earlier statements from management. CFO Andrew Kang said during the February 2026 earnings call that the company is committed to increasing Bitcoin per share and enhancing long-term value for shareholders. With Kang set to depart on November 5, Reza Virasteh will take over as CFO on January 1, 2027.
The decline in STRC’s price explains the need to sell Bitcoin. Executive Chairman Michael Saylor previously noted in February 2026 that they would refrain from selling STRC shares if they traded below $100. With STRC now under that threshold, Strategy Inc. has turned to selling MSTR shares and Bitcoin to cover expenses instead.
A recent vote on October 28 approved daily dividend accrual starting November 1, with 99.3% in favor. This could attract income-focused investors to the preferred stocks. Although Saylor anticipates a forthcoming bull market for Bitcoin, his position as the company’s chairman suggests that this forecast may carry bias.
Is the Largest Bitcoin Buyer Becoming a Seller?
For now, the answer is no. While Strategy Inc. sold Bitcoin to fund dividends and buybacks, it also invested $14.33 billion in Bitcoin in 2026 and increased its USD Assets to $5.07 billion, enabling it to pay preferred shareholders and support STRC without needing to undersell MSTR shares or deplete its cash reserves. For average Bitcoin holders, the situation is less favorable, as buying activity is not driving the price up.
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Sam Daodu is a crypto analyst and the editor of 24/7 Wall St.'s Crypto Desk, where he covers Bitcoin, XRP, Ethereum, Solana and the altcoins investors search for most. His work focuses on price levels, spot ETF flows, on-chain data and the regulatory decisions that move crypto markets, written so a first-time buyer and a seasoned trader can both use it.
Sam has written about crypto professionally since 2019 and has published more than 2,000 articles. Before joining 24/7 Wall St., he wrote for crypto media outlets and Web3 companies and ghostwrote for crypto founders and token launches. His analysis is syndicated on Yahoo Finance, MSN and AOL and has been cited by other crypto news sites. He also founded MacLabs Marketing, a content and personal branding agency for crypto founders and executives.
When he isn't reading charts, Sam is usually at the gym or watching One Piece, a series he maintains has better tokenomics than most altcoins.
