Strategy Sells 3,588 BTC To Fund Preferred Dividends

Strategy sold 3,588 BTC for about $216 million between June 29 and July 5, using the proceeds to fund preferred-stock dividend payments across its digital credit securities.

The sale covered quarterly dividends on STRF, STRE, STRK and STRD, along with the full June monthly dividend on STRC. Strategy ended the period with 843,775 BTC in reserves and a $2.55 billion USD reserve.

The sale follows the company’s late-June capital framework, which allowed Bitcoin monetization for preferred-stock dividends, debt interest, cash-reserve funding and securities repurchases. JPMorgan analysts had already warned that Strategy’s new Bitcoin sales policy changed the market from a one-way accumulation story into a structure that can include selective BTC supply.

The 3,588 BTC sale is much larger than Strategy’s late-May disposal, when the company sold 32 BTC for about $2.5 million to fund preferred distributions.

No ATM Sales Or Buybacks During The Period

Strategy did not sell shares through its at-the-market programs and did not repurchase common or preferred stock during the June 29 to July 5 period.

That keeps the latest dividend funding cleanly tied to Bitcoin monetization rather than equity issuance. It also leaves the company’s $2.55 billion USD reserve unchanged from the level disclosed in its capital-management update.

Strategy’s preferred-stock complex has become the main pressure point in the company’s Bitcoin treasury model. STRC has traded below its $100 stated amount for much of the recent drawdown, while the company lifted its STRC regular dividend rate to 12% and moved the security toward semi-monthly payments.

The reserve framework was designed to support those obligations. Strategy previously listed the $2.55 billion reserve as roughly 17.4 months of coverage for expected preferred-stock dividends and interest expense, a figure that helped STRC rebound toward $88 after the company announced the dividend hike and buyback authorizations.

Bitcoin Treasury Model Enters A New Phase

The latest sale puts Strategy deeper into active balance-sheet management after years of being treated as Bitcoin’s most aggressive corporate accumulator.

Michael Saylor had already reframed the company’s position around selling small amounts of BTC when needed while remaining a net accumulator over time. The larger test is whether the market accepts Bitcoin sales as routine liquidity management or treats each sale as pressure on the treasury model.

Strategy still holds one of the largest corporate Bitcoin positions in the market. Its 843,775 BTC reserve sits alongside $2.55 billion in USD reserves, while quarterly and semi-monthly preferred dividends continue to make cash-flow coverage a central part of the MSTR and STRC trade.

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