Strategy sells 3,588 Bitcoin to fund preferred dividends

Strategy sold 3,588 bitcoin for roughly $216 million, using the proceeds to pay preferred‑stock dividends and replenish its dollar reserve, a move that ends its long‑standing “buy‑and‑hold” narrative【1】.

Sale details and balance‑sheet impact

The company sold 1,363 BTC for $80.8 million between June 29‑30 at an average price of $59,256, then off‑loaded another 2,225 BTC for $135.2 million from July 1‑5 at $60,773 each【1】. The cash was earmarked for preferred‑stock distributions and to raise the USD reserve to $2.55 billion, up from $1.4 billion a week earlier. Strategy’s new Digital Credit Capital Framework now mandates that the reserve cover at least 12 months of preferred‑stock obligations, formalising the link between its bitcoin treasury and liquidity needs【1】.

Remaining exposure and market perception

After the sale, Strategy still holds 843,775 BTC—about 4 % of the total 21 million‑coin supply—valued at roughly $52.3 bn at current prices. The firm’s average acquisition cost was $74,476 per BTC, totalling about $63.7 bn, leaving an $11.4 bn paper loss at today’s price level【1】. Analysts note that this shift turns Strategy from a pure accumulator into a potential source of bitcoin supply when balance‑sheet demands arise, creating “avoidable two‑way risk” for the market【1】. The stock fell about 2 % after the filing, while Bitcoin itself slipped around 2 % on the same day【1】.

Market context and valuation gap

Strategy’s market cap is now roughly $31 bn, below the $51‑$52 bn value of its bitcoin holdings, echoing a broader premium collapse highlighted by other commentary【2】. Preferred‑share holders claim about 41 % of the bitcoin, meaning the remaining equity value aligns closely with the current share price, eroding the historic premium that once amplified stock gains relative to bitcoin’s price moves【2】.

What to watch

• Bitcoin price near $60,000: a level that would affect future monetisation decisions.
• STRC (preferred share) price around $87‑$88: its proximity to the $100 face value influences the cost of raising cash for further bitcoin purchases.
• Any updates to the Digital Credit Capital Framework or the $1 bn BTC Monetisation Program capacity, which could trigger additional bitcoin sales.

The sale underscores that Strategy’s treasury is now a flexible financing tool rather than a pure long‑term hold, raising questions about how often the firm will tap its bitcoin reserve when cash is needed, especially if bitcoin prices stay below the company’s cost basis.