Bitcoin Falls Below $65,000 as Strategy Sells More BTC to Build Its Cash Reserve

Despite hovering just above the key $65,000 mark throughout the weekend, Bitcoin (BTC) has been unable to establish a clear foothold above that level. 

Adding to the pressure, Strategy revealed on Monday that it had sold another batch of BTC the previous week to bolster its cash reserves and repurchase preferred stock. 

Strategy’s Week in Three Moves 

According to a filing disclosed by Michael Saylor on X, Strategy sold 1,690 Bitcoin between August 3 and August 9 at an average price of $64,262 per coin, generating $108.6 million in proceeds. 

Strategy increased its USD Reserve by $650M and repurchased $109M of $STRC. This increased USD Duration by 143 days to 2.7 yrs and tightened STRC’s BTC Credit by 10 bps. As of 8/9/26, we hold ₿840,447 in our BTC Reserve and $4.65B in our USD Reserve. $MSTR…

— Michael Saylor (@saylor) August 10, 2026

The entire amount went toward repurchasing 1,152,020 shares of its STRC preferred stock during the same period. After the sale, Strategy held 840,447 Bitcoin acquired at a total cost of $63.36 billion — an average purchase price of $75,385 per coin, meaning the company is sitting on an unrealized loss at current prices.

Separately, Strategy raised $653.1 million in net proceeds by selling 6,585,682 MSTR common shares through its at-the-market offering program. Of that total, $650 million was directed into its US dollar reserve, with $3.1 million added to its cash balance. 

The moves pushed Strategy’s dollar reserve to $4.65 billion as of August 9 — a buffer the company maintains specifically to fund preferred stock dividend payments and interest on outstanding debt.

Saylor said the transactions increased the company’s USD Duration — a measure of how long the reserve can cover its obligations — by 143 days to 2.7 years. The STRC repurchase program, announced June 29, still has $785.2 million available for future buybacks.

Why Bitcoin Could Hit $70,000 Before Dropping to $51,000 

When it comes to Bitcoin’s price outlook, the latest CryptoQuant report issued Monday did not offer much comfort. The firm described Bitcoin as currently moving through an acute top formation phase — a period where sell-off risk climbs alongside price while the conditions for a sustained breakout remain absent.

CryptoQuant’s analysis places Bitcoin in an ongoing bear market downtrend, with the current recovery representing a wave four retracement — a phase typically characterized by weak momentum, complex price patterns, and declining volume.

The firm said Bitcoin’s current rally has already reached the upper portion of its projected wave four target zone of $62,541 to $67,894, and the more precise top zone of $66,317 to $68,965 where CryptoQuant expects the final high to form. 

Several technical warning signs are flashing simultaneously — Bitcoin’s Moving Average Convergence Divergence (MACD) is making lower highs while price makes higher highs, a bearish divergence that signals weakening momentum. 

Relative Strength Index (RSI) is entering overbought territory. Volume has been declining throughout the six-week rally that began July 1, indicating shrinking participation rather than growing conviction.

Once wave four completes, CryptoQuant said the next downside target is the cyclical 61.8% Fibonacci level at $51,336 — approximately 21% below current prices. If the rally extends further toward $70,000 through what the firm called an alternative wave four scenario, the subsequent downside potential rises to approximately 26%. 

The firm recommended holding back on significant purchases at current levels and said stronger cyclical entry points emerge near $51,000. Bitcoin was trading near $64,850 at the time of writing, down from the weekend highs near $65,400. 

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