Strategy Sells Bitcoin; HOOD Launches Venture Fund IPO

Bitcoin ($BTC) traded at $63,470.28 with a gain of +0.57%, while Ethereum ($ETH) declined -0.76% to $1,853.52. $BTC reached an intraday high of $64,020 late afternoon before moderating. Traders balanced geopolitical risk from Iran against selling pressure from large corporate Bitcoin treasuries. $BTC remains approximately 50% below its all-time high of $126,080 reached in October. Other major tokens showed mixed performance, with Solana ($SOL) gaining +0.18% to $73.11, XRP declining -0.48% to $1.07, and Dogecoin ($DOGE) rising +0.29% to $0.07020.

Strategy Inc. ($MSTR) executed a major strategic pivot, selling $105M in Bitcoin at an average price of $63,957 per coin, significantly below its average acquisition cost of approximately $75,419 per coin. According to an August 3 SEC filing, the company ended a four-week pause in Bitcoin transactions and sold approximately $104M to $105M in $BTC, with half the proceeds funding preferred stock dividends and half directed to an $81M buyback of $STRC (Strategy's preferred stock), its second buyback in two weeks. The company's dollar reserve reached $4B as it moved away from its long-standing "Bitcoin only" accumulation playbook to prioritize liquidity, defend its balance sheet, and manage high-yielding preferred stock obligations. American Bitcoin Corp. ($ABTC) CEO Mike Ho sidestepped questions about selling Bitcoin to fund equity buybacks during the company's second-quarter earnings call. Cantor Fitzgerald reduced price targets on crypto stocks including $MSTR, Coinbase ($COIN), and Robinhood ($HOOD) due to modified valuation assumptions, though the firm remained favorable on all three names and stated the adjustments were not attributable to a longer-term outlook.

Robinhood Markets ($HOOD) announced the launch of Robinhood Ventures Fund II (RVII), targeting a $200 million initial public offering on the New York Stock Exchange with shares expected to list on August 13. The fund will offer up to 8,000,000 common shares of beneficial interest at an expected initial public offering price of $25 per share, consisting of up to 7,600,000 common shares plus an overallotment option. RVII holds 80 private companies and focuses on Y Combinator startups, aiming to provide retail investors access to private companies in their earliest stages. $HOOD reported second-quarter 2026 financial results that beat expectations, posting $1.31 billion in revenue and $0.62 in earnings per share. The e-brokerage platform is popular for its equity, crypto, and tokenized stock offerings.

PayPal Holdings ($PYPL) surged more than 32% in July, its best month ever, boosted by strong second-quarter performance and buyout speculation. The company's balance sheet supports $6B in 2026 buybacks and potential transformative mergers and acquisitions alongside strong free cash flow generation. Analysts described $PYPL as deeply undervalued regardless of whether a deal materializes. Morgan Stanley lowered estimates for Block ($SQ) slightly on more conservative Cash App assumptions in the fourth quarter.

This week, several crypto companies including Circle, MARA Holdings, and Galaxy Digital are scheduled to report second-quarter 2026 financial results. Last week, $HOOD, $COIN, and $MSTR reported quarterly earnings. Tom Lee predicted AI-powered crypto payments will become mainstream within the next five years, stating he believes Ethereum will be the backbone of AI-driven payments and tokenization. Strategy's shift from Bitcoin accumulation to active capital management marks a significant strategic pivot in the corporate Bitcoin treasury space, with implications for other companies holding large cryptocurrency positions.