Transaction Details (June 29 – July 5, 2026)
Published 7/10/2026, 6:28:58 AM
Strategy (formerly MicroStrategy) sold 3,588 BTC for approximately $216 million between June 29 and July 5, 2026, to fund cash dividend payments for its preferred stock. This transaction marked the first time the company explicitly liquidated a portion of its Bitcoin treasury to meet recurring dividend obligations, signaling a transition from a "never sell" accumulation strategy to active capital management.
Transaction Details (June 29 – July 5, 2026)
The sale was executed at a loss relative to the company's cost basis, though it represented a very small fraction of its total holdings.
| Metric | Value |
|---|---|
| Total BTC Sold | 3,588 BTC |
| Total Proceeds | ~$216 million |
| Average Sale Price | ~$60,197 per BTC |
| Company Cost Basis | ~$75,476 per BTC |
| Percentage of Holdings | ~0.42% of total treasury |
| Remaining BTC Holdings | 843,775 BTC |
Reasons for the Sale
The decision to sell Bitcoin rather than using other funding methods was driven by three primary factors:
- High Fixed Dividend Obligations: Strategy has five preferred securities (STRF, STRE, STRK, STRD, and STRC) that require between $1.5 billion and $1.76 billion annually in cash dividend payments. The company's core software business, which generated only ~$124 million in Q1 2026, was insufficient to cover these costs.
- Compressed Equity Premium: Historically, the company funded these obligations by issuing new shares at a premium to its Bitcoin Net Asset Value (NAV). In mid-2026, this premium narrowed, making new equity issuance "dilutive." Consequently, selling Bitcoin became a more attractive and less dilutive funding source.
- Market "Inoculation": Michael Saylor stated the sale was intended to "inoculate the market," demonstrating that the company could sell Bitcoin in a controlled, transparent manner without signaling financial distress or a change in its long-term bullish conviction.
Strategic Shift
On June 29, 2026, the board authorized a BTC Monetization Program allowing for the sale of up to $1.25 billion in BTC to replenish USD reserves. While the market reacted with a 6.27% drop in MSTR stock following the news, the company remains a "net aggregator" of Bitcoin, maintaining over $2.55 billion in cash reserves—enough to cover roughly 17.4 months of future dividend payments without further sales.
The sale effectively ended the "accumulation-only" narrative, establishing Bitcoin as a functional treasury asset that can be used to service the company's complex capital structure when market conditions favor liquidation over equity dilution.