Strategy Sells $216M in Bitcoin to Strengthen Cash Position and Fund Preferred Share Dividends
Strategy has sold a portion of its massive Bitcoin reserves for the second consecutive week, marking another shift in its treasury management strategy as the company balances shareholder obligations with its long-term cryptocurrency investment.
According to a filing released Monday, the company offloaded 3,588 Bitcoin over the past week, generating approximately $216 million. The proceeds were primarily used to pay dividends on its preferred securities while increasing the firm's U.S. dollar reserve, which reached $2.55 billion as of July 5.
Despite the latest sale, Strategy remains the world's largest corporate Bitcoin holder, retaining 843,775 BTC. The company's total Bitcoin investment was acquired at an average purchase price of roughly $75,476 per coin, representing a cumulative cost basis of $63.7 billion.
With Bitcoin recently trading near the $60,000 level, Strategy reported an unrealized second-quarter digital asset loss of approximately $8.32 billion. The decline reflects accounting adjustments tied to market prices rather than realized losses from selling its holdings.
The recent transaction represents just 0.42% of the firm's total Bitcoin reserves but is significantly larger than its previous disposal of 32 BTC for $2.5 million. That earlier sale sparked debate among investors over whether Strategy's long-standing buy-and-hold approach was beginning to evolve.
The company also confirmed that its Bitcoin Monetization Program, introduced on June 29, remains fully available. The initiative authorizes Strategy to generate up to $1.25 billion through Bitcoin sales if additional liquidity is required.
Investor sentiment remained cautious following the announcement. Strategy shares slipped roughly 2% in pre-market trading to $98.88, putting the stock on pace to end a five-session winning streak. Over the past month, the company's shares have declined around 26%, even as Bitcoin has gained nearly 4% during the same period.
Bitcoin itself showed resilience on Monday, holding near $62,900 after briefly climbing above $63,700 during the weekend, reflecting continued strength in the broader cryptocurrency market despite Strategy's treasury adjustments.
The latest Bitcoin sale follows Strategy's newly adopted capital management framework announced last week. Alongside the potential $1.25 billion Bitcoin monetization plan, the company authorized a $2 billion share repurchase program designed to enhance capital flexibility.
Strategy also increased the annual dividend on its Stretch (STRC) preferred security to 12% while expanding its dollar reserve. Management previously indicated that its current cash position, combined with access to Bitcoin reserves, would be sufficient to cover roughly 26 months of dividend payments.
Meanwhile, Executive Chairman and co-founder Michael Saylor continued promoting his long-term outlook for Bitcoin. In recent posts on X, Saylor described Bitcoin as "Digital Energy" and argued that the asset's future growth will be driven less by protocol upgrades and more by expanding capital markets and the development of digital credit infrastructure.