Strategy sold 3,588 Bitcoin, raising $216 million to finance preferred stock dividend payments and strengthen its cash reserves. This transaction reduced its total Bitcoin holdings to 843,775 BTC, according to a recent filing with the US Securities and Exchange Commission (SEC).
The sale occurred in two phases: 1,363 BTC were sold at an average price of $59,256 between Monday and Tuesday, and another 2,225 BTC sold at an average price of $60,773 from Wednesday through Sunday. Earlier in June, the company had also sold 32 BTC, marking its first Bitcoin sale since a 2022 tax-loss transaction.
In a separate filing on June 29, Strategy revealed a new capital framework allowing Bitcoin sales to fund dividend distributions. The company also announced an increased annual dividend rate of 12% on its STRC preferred stock and disclosed its US dollar reserve had grown to $2.55 billion. The most recent filing confirmed this dollar reserve remained steady.
STRC shares trade below their $100 par value, recently at about $88.70, which constrains Strategy’s capacity to raise funds through new preferred stock sales. This discount could prompt the company to consider further dividend increases to attract investors and stabilize the stock’s price.
Before the latest Bitcoin sale, Bernstein analysts assessed that Strategy was unlikely to face compelled liquidations due to its strong liquidity and significant cash reserves. Bernstein highlighted that Strategy had sufficient cash to cover dividend and interest obligations for an estimated 17 months.
Notably, Bernstein pointed out that Strategy continues to accumulate Bitcoin overall, acting as a stabilizing force in a market where major US Bitcoin miners have turned net sellers amid their focus on artificial intelligence ventures. The company’s debt amounts to approximately 13% of its Bitcoin collateral value, and its next $1 billion principal repayment is scheduled for the third quarter of 2028.
Bernstein reaffirmed a bullish long-term outlook on Bitcoin, maintaining a $150,000 year-end price target despite current market fluctuations, emphasizing Strategy’s critical role amid significant Bitcoin outflows from exchange-traded funds earlier this year.