Strategy sold 3,588 BTC for approximately $216 million between June 29 and July 5 to fund dividends on its preferred stock securities. Michael Saylor's firm disclosed the transaction via SEC filing and social media on July 6, 2026, stating the proceeds would cover dividend payments on STRF, STRE, STRK, STRD, and STRC securities while maintaining a cash reserve of $2.55 billion. The sale represents 0.42% of Strategy's total Bitcoin holdings, with the company retaining 843,775 BTC worth roughly $52.9 billion—a figure that equals approximately 179% of its current market capitalization. Strategy chose to sell a small portion of Bitcoin rather than issue new shares at a discount to net asset value, a decision the company's president Phong Le described as 'evolving from one-way capital issuance to active capital management.' The transaction marks Strategy's largest Bitcoin sale to date, though the company's holdings remain up 41.25% over the past twelve months.
Strategy Sold 3,588 BTC Between June 29 and July 5
Strategy executed the sale in two separate transactions during the June 29 to July 5 period, according to an SEC filing. Michael Saylor announced the transaction on July 6, 2026, stating the company used the $216 million in proceeds to fund dividends on its Digital Credit securities. The company's cash reserves stood at $2.55 billion following the transaction. Strategy disclosed that it held 843,775 BTC in reserves after completing the sale.
Sale Represents 0.42% of Total Holdings
The 3,588 BTC sale constituted 0.42% of Strategy's total Bitcoin position. Before the transaction, the company held 847,363 BTC according to treasury tracking data. Strategy's Bitcoin holdings increased 41.25% over the past twelve months and 25.22% over the past six months. The company's remaining Bitcoin holdings of approximately $52.9 billion represent roughly 179% of Strategy's total market capitalization. The market currently values the entire company below the value of the Bitcoin on its balance sheet.
Company Chose Bitcoin Sale Over Share Dilution
Strategy's president Phong Le characterized the decision as 'evolving from one-way capital issuance to active capital management.' The company previously funded operations by issuing shares when its stock traded at a premium to its Bitcoin holdings. With the stock currently trading below net asset value, issuing new shares would dilute Bitcoin-per-share for existing shareholders. Strategy determined that selling 0.42% of its Bitcoin holdings caused less dilution than issuing discounted common stock.
STRC Preferred Stock Pays 12% Annual Dividend
Strategy's STRC security is a perpetual preferred share priced around $100 that pays a 12% annual dividend in cash twice per month. The company adjusts the rate monthly to maintain the price near $100. Strategy's software business does not generate sufficient cash flow to cover the preferred stock dividends, requiring the company to fund payments through securities issuance or Bitcoin sales. The June dividend payment on STRC was among the obligations covered by the Bitcoin sale proceeds.
FAQ
Why did Strategy sell Bitcoin between June 29 and July 5?
Strategy sold 3,588 BTC for $216 million to fund dividend payments on its preferred stock securities including STRF, STRE, STRK, STRD, and STRC. The company's president Phong Le stated this represented a shift to 'active capital management' rather than relying solely on share issuance for funding.
What percentage of Strategy's Bitcoin holdings did the company sell?
The 3,588 BTC sale represented 0.42% of Strategy's total holdings. The company retained 843,775 BTC worth approximately $52.9 billion after the transaction, an amount equal to roughly 179% of its market capitalization.
How does Strategy's STRC preferred stock dividend work?
STRC is a perpetual preferred share priced around $100 that pays a 12% annual dividend in cash twice per month. Strategy adjusts the rate monthly to keep the price near $100, and the company's software business does not generate enough cash to cover these dividend payments without additional funding sources.
