Strategy offloads 3,588 BTC worth $216M for dividend funding while maintaining $2.55B cash position
In a move to finance dividend obligations, Strategy divested $216 million worth of Bitcoin, while Bernstein analysts reaffirmed their $150,000 Bitcoin price forecast for year-end.
In order to finance preferred stock dividend obligations and restore cash reserves, Michael Saylor's Strategy divested 3,588 Bitcoin (BTC) from its holdings.
The company generated $216 million from the Bitcoin sale, bringing its aggregate holdings down to 843,775 Bitcoin, based on a Monday filing submitted to the US Securities and Exchange Commission via Form 8-K.
The transaction breakdown showed 1,363 Bitcoin were divested at a mean price of $59,256 during the period spanning last Monday through Tuesday, while an additional 2,225 Bitcoin were sold at an average price point of $60,773 from Wednesday through Sunday.
Earlier this year in June, Strategy announced the divestment of 32 Bitcoin, marking its initial reported sale of the cryptocurrency since executing a tax-loss transaction in 2022.
In its June 29 8-K submission, Strategy revealed a new capital framework that permits Bitcoin sales for dividend funding purposes, elevated the annual dividend rate for its STRC preferred stock to 12%, and confirmed that its US dollar reserve position had reached $2.55 billion. The latest Monday filing indicated that this dollar reserve level remained stable.
During Monday's pre-market trading hours, Strategy's perpetual preferred stock instrument, STRC, was changing hands at $88.70, representing a discount of 11.3% relative to its $100 designated par value, based on data from Yahoo Finance.
The STRC preferred stock represents a primary vehicle for Strategy to generate capital for its Bitcoin acquisition strategy. When STRC trades beneath par value, it constrains Strategy's capacity to raise capital through STRC offerings. This situation could potentially compel the firm to further elevate its nominal dividend rate in order to entice investors and support STRC's market price.
Bernstein says Strategy unlikely to face forced Bitcoin sales
Prior to Strategy's disclosure of its most recent Bitcoin divestment, Bernstein analysts indicated that the firm was improbable to encounter forced liquidation of its holdings, pointing to its liquidity status and cash reserve position as supporting factors.
According to Bernstein's analysis, Strategy possessed sufficient cash to satisfy dividend requirements and interest expenses for a 17-month period. The report further noted that the company continued to operate as a net acquirer of Bitcoin and functioned as a significant "balancing force" within a marketplace where prominent US Bitcoin mining operations have become net sellers following their strategic shift toward AI.
According to Bernstein's assessment, Strategy's ongoing accumulation activity has provided a crucial "balancing force" against the backdrop of selling pressure from US Bitcoin mining companies and the $5.5 billion in capital outflows from Bitcoin exchange-traded funds (ETFs) recorded thus far in 2026.
The debt obligations held by Strategy constituted a "mere" 13% relative to the value of its Bitcoin collateral. Based on Bernstein's analysis, the company's upcoming principal repayment of approximately $1 billion isn't scheduled until the third quarter of 2028.
Maintaining its year-end Bitcoin valuation forecast of $150,000, Bernstein expressed that it continued to be "optimistic on Bitcoin long-term."