Strategy sold 3,588 Bitcoin for about $216 million last week to fund dividends on its Digital Credit securities, marking its largest disclosed Bitcoin sale to date.
The company said in a July 6 filing that the sale reduced its Bitcoin reserves to 843,775 BTC as of July 5. Strategy also reported $2.55 billion in U.S. dollar reserves after using proceeds to support preferred stock dividend payments.
Source: X
The sale came after Strategy had previously sold 32 BTC in late May to fund dividends. The latest sale was much larger and raised new questions about how often the company may use its Bitcoin Monetization Program.
Strategy Sells Bitcoin to Fund Dividends
Strategy said it sold 3,588 BTC for $216 million to fund dividends on its Digital Credit securities. The sale was executed at an average price near $60,000 per Bitcoin.
The company said the proceeds will support distributions on its preferred stock and replenish the part of its dollar reserve used for those payments. The preferred securities include STRF, STRE, STRK, STRD, and STRC.
Strategy said it did not buy Bitcoin during the week. It also did not sell shares through its at-the-market equity program or repurchase shares under its buyback programs during the same period.
The company still has the full $1.25 billion capacity available under its recently announced Bitcoin Monetization Program, after the latest filing said the authorization remains open.
Bitcoin Holdings Fall to 843,775 BTC
Strategy’s Bitcoin reserves fell to 843,775 BTC after the sale. The company acquired its remaining Bitcoin holdings for about $63.69 billion, at an average purchase price of $75,476 per coin.
The latest sale was made below Strategy’s average acquisition price. Peter Schiff said on X that the sale may represent a realized loss of about $15,000 per Bitcoin, or roughly $54 million.
Schiff wrote, “Given MSTR’s average cost, that’s a realized loss of about $15K per Bitcoin.” His estimate reflects his calculation based on Strategy’s reported average cost and the sale price.
Strategy has not described the sale as a change in its long-term Bitcoin strategy. The company still holds more Bitcoin than any other public company, but the latest sale shows that preferred dividend obligations are now part of its treasury decisions.
Saylor Post Sparked Buy Expectations
Before the filing, Michael Saylor posted “Bitcoin is Digital Energy” on X with Strategy’s Bitcoin acquisition chart. Traders had often viewed similar posts as a signal before new Bitcoin purchase filings.
This time, the filing showed a Bitcoin sale instead of a purchase. The difference drew attention because Strategy’s public image has long been tied to Bitcoin accumulation.
Strategy’s official account later confirmed the sale, saying, “Strategy has sold 3,588 BTC for $216 million to fund dividends on our Digital Credit securities.”
The company also said it held 843,775 BTC in Bitcoin reserves and $2.55 billion in U.S. dollar reserves as of July 5. That update gave investors a clearer view of its post-sale treasury position.
Bitcoin and MSTR React to Filing
Bitcoin fell below $62,000 after Strategy disclosed the sale. Market data cited in reports said more than $78 million in long positions were liquidated within about 20 minutes after the update.
MSTR shares also slipped in premarket trading. The stock was down about 2% after the filing, while Bitcoin gave back part of its weekend gains.
Ripple CEO Brad Garlinghouse had earlier criticized Strategy’s Bitcoin financing model, saying financial engineering does not create long-term value. His comments added to wider debate over whether leveraged Bitcoin treasury models create pressure on crypto markets.
Strategy has said its capital framework is meant to manage liquidity and support its Digital Credit securities. Investors will now watch whether the company uses more of its Bitcoin Monetization Program or returns to buying Bitcoin through new capital raises.
