Bitcoin Price Slips Near $63,500 as Strategy Sells 1,638 BTC

Key Takeaways

• Strategy sold 1,638 BTC at an average price of $63,957, generating net proceeds of approximately $104.7 million.
• The Bitcoin proceeds funded preferred-stock dividends and STRC share repurchases, while separate MSTR share sales increased the company’s US dollar reserve.
• Galaxy Research estimates confirmed Coldcard-related thefts at 1,596 BTC, with a possible fourth attack wave potentially lifting losses to approximately $130 million.

Bitcoin Holds Near $63,500

Bitcoin changed hands near $63,500 during August 4 trading, with prices fluctuating within a relatively narrow range after recent volatility. The muted move suggested that immediate selling pressure remained controlled, although sentiment was weakened by corporate supply and renewed cryptocurrency security concerns.

Strategy’s latest transaction was particularly significant because the company has long been associated with aggressive Bitcoin accumulation. Its recent sales therefore raise questions about whether funding obligations could lead to additional coins entering the market.

Strategy’s official ledger shows that the company also disclosed Bitcoin sales on June 1, June 30 and July 6, marking a notable shift from its previous one-directional accumulation strategy.

Strategy Sells 1,638 BTC for $104.7 Million

Strategy disclosed that it sold 1,638 Bitcoin between July 27 and August 2 at an average net price of $63,957. The sale generated approximately $104.73 million.

Following the transaction, Strategy held 842,138 BTC acquired for an aggregate cost of $63.51 billion, equivalent to an average purchase price of $75,419 per coin. The company’s average cost therefore remains considerably above Bitcoin’s current market price.

At a Bitcoin price of approximately $63,500, Strategy’s remaining holdings would have an estimated market value of about $53.5 billion. This implies a difference of roughly $10 billion from the disclosed aggregate acquisition cost, although the figure will continue to fluctuate with Bitcoin prices.

The latest sale does not necessarily indicate that Strategy has abandoned its long-term Bitcoin strategy. However, it demonstrates that the company is increasingly willing to use part of its cryptocurrency holdings to meet financing and capital-management obligations.

Bitcoin Proceeds Fund Dividends and STRC Buybacks

Strategy said approximately $52.4 million of the Bitcoin sale proceeds was used to fund dividends on its preferred stock. Another $52.3 million supported repurchases of STRC, its Variable Rate Series A Perpetual Stretch Preferred Stock.

The company separately sold 3.01 million MSTR common shares through its at-the-market programme, raising net proceeds of $290.6 million. Of that amount:

• $250 million was allocated to Strategy’s US dollar reserve.
• $28.9 million funded additional STRC repurchases.
• $11.7 million was added to the company’s general cash balance.

This distinction is important: the increase in Strategy’s dollar reserve came primarily from common-stock issuance, rather than directly from the Bitcoin sale. Strategy reported that its dollar reserve stood at $4 billion as of August 2.

The transactions illustrate how Strategy is balancing Bitcoin exposure with preferred-stock dividends, share repurchases and liquidity requirements. Further Bitcoin sales could become a more prominent market consideration if those obligations continue to grow.

Coldcard Hack Losses Could Reach $130 Million

Bitcoin sentiment was also affected by reports of a vulnerability involving certain Coldcard hardware wallets.

Galaxy Research identified 1,596 BTC taken from approximately 7,300 addresses across three confirmed attack waves, alongside 14 smaller incidents. A suspected fourth wave has not yet been fully confirmed, but its inclusion could increase the total to 2,055 BTC—worth approximately $130 million at prevailing prices.

The reported vulnerability affected seed generation in certain firmware versions used by Coldcard Mk3, Mk4, Mk5 and Coldcard Q devices. Manufacturer Coinkite subsequently released emergency firmware updates for the affected models.

The incident concerns a hardware-wallet implementation rather than a breach of the Bitcoin blockchain itself. Nevertheless, large thefts can damage investor confidence and increase near-term selling risk if stolen coins are transferred to exchanges. Galaxy Research reported that most of the identified stolen Bitcoin had not moved at the time of its assessment.

What Could Move Bitcoin Next?

Bitcoin’s next move may depend on whether Strategy conducts further sales and whether the suspected fourth Coldcard attack wave is confirmed.

Investors may also monitor movements from addresses linked to the theft. Transfers to cryptocurrency exchanges could increase expectations of additional supply, while limited movement may reduce immediate selling concerns.

More broadly, Bitcoin remains sensitive to institutional flows, geopolitical risk and overall appetite for speculative assets. Strategy’s financing activity adds another variable: repeated sales could pressure sentiment, while an end to the disposals could help stabilise expectations around corporate Bitcoin demand.