Saylor Just Sold the Dip He Bought: 3,588 $BTC Out the Door at a Loss 📉

Strategy, the largest publicly traded corporate holder of Bitcoin, sold 3,588 $BTC for approximately $216 million between June 29 and July 5 to fund dividends on its Digital Credit securities and replenish its U.S. dollar reserves, according to a Monday Form 8-K filing with the U.S. Securities and Exchange Commission. The sales were split into two tranches: 1,363 $BTC sold at an average price of $59,256 between June 29 and 30, generating about $80.8 million, and 2,225 $BTC sold at an average price of $60,773 between July 1 and 5, generating about $135.2 million. The Michael Saylor-led company disclosed the proceeds funded dividends on its perpetual preferred stock STRC, whose annual dividend rate was raised to 12% on June 29, and that its USD Reserve held steady at $2.55 billion as of July 5.

Following the transaction, Strategy's holdings stood at 843,775 $BTC, carried at a total cost basis of $63.7 billion, or an average of $75,476 per coin. With $BTC trading near $60,000, the company reported an $8.32 billion unrealized loss on its digital assets for the second quarter, alongside a $0.9 million realized loss from the sales. The latest disclosure marks the company's largest $BTC sale since a December 2022 transaction in which it sold 704 $BTC at roughly $16,500 per coin for tax-loss harvesting purposes, and follows a separate sale of 32 $BTC in early June.

The move marks the first execution of Strategy's Digital Credit Capital Framework, unveiled June 29, which authorizes the company to sell up to $1.25 billion in $BTC to support its USD Reserve, pay preferred stock dividends and interest expenses, and fund repurchases of preferred securities and Class A common stock. The framework also authorized $2 billion in stock buybacks. As of July 5, the company said the $1.25 billion sales capacity remained fully available. Strategy's STRC traded at $88.70 during Monday's pre-market session, or 11.3% below its $100 intended par value, per Yahoo Finance data.

On Monday, Executive Chairman Michael Saylor said on X that Strategy sold 3,588 $BTC to fund dividends on its Digital Credit securities and that it holds 843,775 $BTC in its $BTC Reserves alongside $2.55 billion in its USD Reserves. Saylor, who referred to $BTC as "Digital Energy" on Sunday, also predicted on X that changes in $BTC's codebase would be less impactful on the asset's evolution than deepening capital markets and an expansion of digital credit. Bernstein analysts, writing before the disclosure, said Strategy had 17 months of cash to cover dividend obligations and interest payments, maintained its $150,000 year-end $BTC price target, and noted the company's debt liabilities represented roughly 13% of its $BTC collateral value, with its next principal payment of about $1 billion due in the third quarter of 2028.