Saylor's 21 Million Strategy Sells a Few, Hodls the Rest 💼

Strategy, the Michael Saylor-led software firm turned largest corporate Bitcoin holder, sold 3,588 BTC for approximately $216 million between June 29 and July 5, according to a Monday 8-K filing with the U.S. Securities and Exchange Commission. The proceeds were used to fund dividends on the company's Digital Credit securities and to top up its U.S. dollar reserves, which stood at $2.55 billion as of July 5. Strategy now holds 843,775 BTC, carried at an average cost basis of $75,476 per coin.

The sale was the first executed under the company's Digital Credit Capital Framework, introduced in a June 29 8-K filing. The framework authorizes limited Bitcoin sales to build USD reserves, pay preferred stock dividends and interest, and fund repurchases of preferred securities and Class A common stock, while preserving the firm's long-term Bitcoin exposure. As of July 5, the framework's $1.25 billion authorization remained fully available.

Pricing details disclosed in the filing show 1,363 BTC were sold at an average price of $59,256 between June 29 and June 30, generating $80.8 million, and 2,225 BTC were sold at an average price of $60,773 between July 1 and July 5, generating $135.2 million. Strategy's perpetual preferred stock, STRC, traded at $88.70, or 11.3% below its $100 intended par value, during Monday's pre-market session, according to Yahoo Finance data.

With Bitcoin trading near $60,000, well below Strategy's average acquisition cost, the company booked an unrealized loss of $8.31 billion on its digital assets for the second quarter, alongside a realized loss of $0.9 million. Strategy also announced a 50 basis-point increase to STRC's annual dividend rate, bringing it to 12%.

In a post on X on Monday, Executive Chairman Michael Saylor said the company sold 3,588 $BTC to fund dividends on its Digital Credit securities. On Sunday, Saylor referred to Bitcoin as "Digital Energy" while sharing a chart of the company's latest purchases, and on Monday morning predicted on X that changes in Bitcoin's codebase would be less impactful on the digital asset's evolution than deepening capital markets and an expansion of digital credit.

Bernstein said in a report issued before Monday's disclosure that Strategy was unlikely to be forced to sell its holdings, citing 17 months of cash to cover dividend obligations and interest payments. The research firm noted that Strategy's debt liabilities represented 13% of its Bitcoin collateral value, with the next principal payment of approximately $1 billion due in the third quarter of 2028, and maintained its $150,000 year-end Bitcoin price target.