Blab Crypto
Strategy Inc. Sells Bitcoin to Fund Preferred Stock Dividends, Signals Shift from Never Sell Stance
Strategy Inc., formerly known as MicroStrategy, has sold a significant amount of its Bitcoin holdings in the past week, a move that marks a departure from the company’s long‑standing “never sell” policy. The sales were made to bolster the company’s USD reserve, which is used to pay dividends on its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC). The company’s Digital Credit Capital Framework, announced on June 29, 2026, formalizes the use of Bitcoin as collateral for debt and preferred‑stock obligations.
According to on‑chain data from Lookonchain, wallets linked to Strategy transferred 1,030 BTC, valued at approximately $66.14 million, on August 5. The company has also reported that it sold 1,638 BTC between July 27 and August 2, raising $104.7 million to strengthen its USD reserve. These sales are part of a broader BTC Monetization Program that, as of the end of 2026, has seen Strategy sell $218.4 million of Bitcoin year‑to‑date.
The average sale price last week was $63,957 per BTC, compared with the company’s average acquisition cost of $75,419. This represents an implied loss of roughly $11,462, or 15.2%, per Bitcoin sold. The loss is not an indication of confidence in Bitcoin’s price but rather a necessity to meet the dividend obligations on STRC.
STRC’s par value has been a key indicator of when Strategy might resume Bitcoin purchases. The par value fell to around $70 in June, but by the end of July it had risen 35% to $95.18. The company has stated that it intends to restore STRC to its $100 par value before it resumes buying Bitcoin. The recent price recovery suggests that the company’s selling pressure is linked to a defined exit strategy rather than an open‑ended mandate.
The shift from a “never sell” stance has drawn attention from investors and market analysts. Some view the sales as a potential drag on Bitcoin’s price, given Strategy’s status as the largest corporate holder of the asset. Others see the sales as a prudent financial decision to maintain liquidity for preferred‑stock dividends.
Strategy’s Digital Credit Framework also includes a $1.0 billion digital‑credit securities repurchase program and a $1.0 billion common‑stock buyback program. These initiatives, combined with the BTC Monetization Program, aim to reduce financing risk and provide a clear path for future Bitcoin purchases once the preferred‑stock dividends are sustainably funded.
In summary, Strategy Inc. is actively selling Bitcoin to fund its preferred‑stock dividend obligations under its Digital Credit Capital Framework. The company’s recent sales are tied to a specific financial goal—restoring STRC to its $100 par value—rather than a wholesale change in its Bitcoin investment thesis. Investors will likely monitor the trajectory of STRC’s par value and the company’s subsequent disclosures to gauge when, if at all, Strategy will resume large‑scale Bitcoin purchases.
According to on‑chain data from Lookonchain, wallets linked to Strategy transferred 1,030 BTC, valued at approximately $66.14 million, on August 5. The company has also reported that it sold 1,638 BTC between July 27 and August 2, raising $104.7 million to strengthen its USD reserve. These sales are part of a broader BTC Monetization Program that, as of the end of 2026, has seen Strategy sell $218.4 million of Bitcoin year‑to‑date.
The average sale price last week was $63,957 per BTC, compared with the company’s average acquisition cost of $75,419. This represents an implied loss of roughly $11,462, or 15.2%, per Bitcoin sold. The loss is not an indication of confidence in Bitcoin’s price but rather a necessity to meet the dividend obligations on STRC.
STRC’s par value has been a key indicator of when Strategy might resume Bitcoin purchases. The par value fell to around $70 in June, but by the end of July it had risen 35% to $95.18. The company has stated that it intends to restore STRC to its $100 par value before it resumes buying Bitcoin. The recent price recovery suggests that the company’s selling pressure is linked to a defined exit strategy rather than an open‑ended mandate.
The shift from a “never sell” stance has drawn attention from investors and market analysts. Some view the sales as a potential drag on Bitcoin’s price, given Strategy’s status as the largest corporate holder of the asset. Others see the sales as a prudent financial decision to maintain liquidity for preferred‑stock dividends.
Strategy’s Digital Credit Framework also includes a $1.0 billion digital‑credit securities repurchase program and a $1.0 billion common‑stock buyback program. These initiatives, combined with the BTC Monetization Program, aim to reduce financing risk and provide a clear path for future Bitcoin purchases once the preferred‑stock dividends are sustainably funded.
In summary, Strategy Inc. is actively selling Bitcoin to fund its preferred‑stock dividend obligations under its Digital Credit Capital Framework. The company’s recent sales are tied to a specific financial goal—restoring STRC to its $100 par value—rather than a wholesale change in its Bitcoin investment thesis. Investors will likely monitor the trajectory of STRC’s par value and the company’s subsequent disclosures to gauge when, if at all, Strategy will resume large‑scale Bitcoin purchases.
