Strategy Sells 32 Bitcoin to Fund Preferred Stock Dividends

Strategy, the world’s largest corporate holder of bitcoin, disclosed the sale of 32 bitcoin for approximately $2.5 million in an SEC filing submitted on June 1, 2026 [1, 2, 3]. The company, led by Executive Chairman Michael Saylor, stated that the proceeds are intended to fund distributions on its STRC perpetual preferred stock [1, 2].

Key takeaways

• The sale of 32 bitcoin represents less than 0.004% of Strategy’s total holdings [2, 3].
• Michael Saylor stated the company’s goal is to make STRC the world's best credit instrument [1].
• Strategy previously sold bitcoin in December 2022 for tax-loss harvesting purposes [1, 2, 3].
• The company’s average acquisition cost per bitcoin is near $75,700, leaving its current holdings underwater at recent market prices [2].

A Shift in Treasury Strategy

The recent sale occurred at an average price of $77,135 per coin [1, 2]. While the company has historically maintained a "hold" strategy, management signaled a shift during the Q1 2026 earnings call, where Saylor noted that the firm might sell small amounts of bitcoin to fund dividends and demonstrate that the company can manage liabilities without relying solely on stock sales [2, 3]. Saylor compared this operational approach to real estate development, where a portion of an asset is sold at a higher value to cover expenses while the firm continues to accumulate more land [2].

Market reactions to the sale have been mixed. Some observers, such as Onramp CEO Michael Tanguma, noted that the move changes the long-standing premise that the company’s bitcoin would never be touched [2]. Others, including Peter Schiff, questioned the sustainability of the firm's model, which relies on raising capital through preferred stock instruments that carry annual costs of approximately 11% [2]. Despite these concerns, the company maintains that it remains a net aggregator of bitcoin, with executives suggesting they could purchase 10 to 20 bitcoin for every one sold [2].

Why it matters

The sale highlights the evolving treasury architecture of Strategy as it navigates a period of market volatility. With bitcoin prices struggling since hitting an all-time high of $125,000 in October 2025, the firm has faced significant unrealized losses, booking roughly $30 billion over the last two quarters [2]. While some analysts suggest the sale was executed for tax-lot optimization to offset taxable income, others point to the potential impact of the corporate alternative minimum tax on unrealized gains, which could necessitate periodic sales in the future [3]. As Strategy continues to deploy capital from its STRC preferred stock to acquire more bitcoin, the market remains divided on whether this model represents a financial innovation or a risk-heavy structure dependent on constant asset appreciation [2].