Strategy Sells Bitcoin to Fund $216M Dividend Payout

The company sold bitcoin to fund cash dividends on its preferred stock. It also used the proceeds to refill the reserve that covers those payments. As of July 5, Strategy still held 843,775 BTC. It also kept $2.55 billion in USD reserves.

Why Strategy Sold Bitcoin This Week

The sale happened in two tranches. First, the company sold 1,363 BTC for $80.8 million on June 29 and 30. Then it sold another 2,225 BTC for $135.2 million from July 1 to July 5.

In total, that works out to roughly $60,201 per Bitcoin. The amount sold equals about 0.425% of the firm’s stack. So the vast majority of the treasury stays untouched.

Saylor framed the move as routine treasury work. According to his July 6 post on X, the proceeds covered dividends on the company’s Digital Credit securities. In a follow-up, he named the Q2 dividends on STRF, STRE, STRK, and STRD. He also cited the full June monthly dividend on STRC.

Inside the BTC Monetization Program

This is the first material use of a program set up days earlier. On June 29, Strategy announced its Digital Credit Capital Framework. That framework included a $1.25 billion BTC Monetization Program.

The program lets the company sell Bitcoin to top up a dedicated USD reserve. That reserve now sits at $2.55 billion. Strategy says it covers about 17.4 months of preferred dividends and interest. Under the new policy, the reserve must hold at least 12 months of coverage.

So the “routine” label has a structural basis. The company no longer needs fresh capital for every dividend. Instead, it can convert a small slice of Bitcoin into cash. It controls the timing itself.

The company did not name a counterparty for the sale. Large treasury sales often route through OTC desks or custodians. As a result, no public transaction hashes have surfaced on major block explorers. On-chain trackers still show holdings near the 843,775 BTC mark.

How the Digital Credit Model Works

Strategy’s Digital Credit securities are perpetual preferred stocks. Each one promises a fixed or adjustable cash dividend. Those payments are contractual, and the company must meet them in dollars.

The yields are steep. STRK carries an 8% annual rate paid quarterly. STRD pays 10% annually. STRC pays 12% annually on a semi-monthly, adjustable basis. As a result, cash flows out no matter where Bitcoin trades.

Previously, Strategy leaned on equity sales and convertible notes. That capital funded both new Bitcoin buys and these dividends. By contrast, selling Bitcoin directly avoids further share dilution. That is the core reason Strategy sells Bitcoin instead of only issuing new stock. In short, it resembles a gold miner selling a sliver of gold to pay interest on its bonds.

Strategy Sells Bitcoin Below Its Cost Basis

The execution has drawn sharp criticism. The average sale price was about $60,201 per coin. That sits well below the company’s reported cost basis. Analysts place that basis around $75,000 per Bitcoin. So the sale locked in a loss against what Strategy paid.

Longtime skeptic Peter Schiff seized on the “buy high, sell low” optics. Many critics pointed to the firm’s long-promoted “never sell” stance. That stance first cracked with a small 32 BTC sale in late May 2026.

Supporters counter that the sale is tiny and prudent. They say meeting dividends without diluting shareholders is responsible. Bitcoin traded in the $60,000 to $64,000 range during the sale window. Both readings can hold at once. So far, the market reaction has been muted. Traders had largely priced in the June framework. The sale itself surprised few of them.

What Comes Next for Saylor’s Treasury

Strategy’s stock has held up through the shift. MSTR common recently traded in the $90 to $100 range. The June 29 framework drew a positive reaction across its preferred shares. So investors have not punished the pivot so far.

The open question is whether this becomes a habit. The Monetization Program allows up to $1.25 billion in sales. The company has now used $216 million of that capacity. That leaves plenty of room for more.

For now, Strategy has not said whether more sales are planned. If Bitcoin stays range-bound, the firm may lean on the program again. Meanwhile, investors will watch each dividend cycle closely. They want to know if every payout triggers a fresh sale.

Either way, the “never sell” era is over. The next 8-K will show how far Strategy sells Bitcoin to fund its dividends. This article is not financial advice. Readers should do their own research before making any investment decision.