Strategy Sells 3,588 Bitcoin for $216M to Fund Dividend Payments

Strategy sold 3,588 Bitcoin for roughly $216 million between June 29 and July 5, using the proceeds to pay dividends on its preferred stock and replenish its cash reserve, according to a Form 8-K filed with the U.S. Securities and Exchange Commission on Monday. Chairman Michael Saylor confirmed the sale in a post on X, and the company also announced it via its official account.

The sale came in two tranches, per the filing. Strategy sold 1,363 BTC for $80.8 million, at an average price of $59,256, between June 29 and June 30. It then sold 2,225 BTC for $135.2 million, at an average price of $60,773, between July 1 and July 5.

The filing states that proceeds "were used to fund payment of distributions on preferred stock and to replenish the portion of the USD reserve used for this purpose."

The proceeds covered second-quarter dividends on the STRF, STRE, STRK and STRD preferred securities and the June monthly payment on STRC, though the 8-K itself does not break out the sale proceeds by security.

Strategy held 843,775 BTC as of July 5, carried at an aggregate purchase price of $63.69 billion, or about $75,476 per coin. That's down from 846,000 BTC and a $63.94 billion cost basis as of June 30.

Market reaction

MSTR shares fell about 2% in pre-market trading to $98.88, according to Yahoo Finance data, putting the stock on track to snap a streak of five consecutive daily gains. Bitcoin traded near $62,000, down roughly 1% over the prior 24 hours, according to CoinGecko data.

Strategy did not sell shares under its at-the-market offering program or repurchase shares under its buyback programs during the June 29–July 5 period, the filing said.

Monetization program capacity untouched

Strategy's $2.55 billion USD Reserve, which funds preferred dividends and debt interest, was unchanged from the level it disclosed on June 29, the filing shows.

That day, the company adopted a Digital Credit Capital Framework that authorized a Bitcoin Monetization Program allowing it to sell up to $1.25 billion of BTC specifically to fund the USD Reserve. Monday's filing said "the full amount of this capacity remains available" as of July 5, indicating the week's $216 million sale was executed to fund dividends directly rather than drawn against that $1.25 billion authorization.

The framework followed Strategy's sale of 32 Bitcoin for $2.5 million in late May, its first disclosed Bitcoin sale since a 2022 tax-loss transaction. Monday's 3,588 BTC sale is roughly 100 times larger.

$8.32 billion quarterly loss

Strategy also disclosed an $8.32 billion loss on digital assets for the quarter ended June 30, comprising $8.31 billion in unrealized losses and $900,000 in realized losses. The company's digital asset carrying value stood at $49.67 billion as of June 30.

Because the cost basis of its bitcoin holdings exceeded fair value at quarter-end, Strategy said it will record a full valuation allowance against the deferred tax benefit and deferred tax asset tied to the unrealized loss.

The filing separately disclosed that Andrew Kang, Strategy's chief financial officer, was designated principal accounting officer effective June 30, following the retirement of Jeanine Montgomery, the company's vice president and chief accounting officer.