Strategy sold 3,588 Bitcoin worth $216 million during the past week to support dividend payments on its STRC preferred securities. The transaction marked the company’s largest Bitcoin sale so far this year and reduced its total holdings to 843,775 BTC. Meanwhile, MSTR shares declined in premarket trading, while Bitcoin also traded lower after the disclosure.
Strategy Uses Bitcoin Sale to Support STRC Dividend Payments
Strategy completed two Bitcoin sales between June 29 and July 5 and raised about $216 million. The company disclosed the transactions through a filing with the U.S. Securities and Exchange Commission. Therefore, the move confirmed its decision to use Bitcoin reserves for funding preferred stock obligations.
The company sold 1,363 BTC between June 29 and June 30 for approximately $80.8 million. It then sold another 2,225 BTC between July 1 and July 5 for about $135.2 million. Together, both transactions represented the company’s largest Bitcoin sale to date.
Following the transactions, Strategy held 843,775 Bitcoin and maintained approximately $2.55 billion in U.S. dollar reserves. The filing stated that the proceeds would fund dividend payments linked to its digital credit securities. As a result, the company continued executing the financing framework introduced through its preferred securities programme.
STRC and MSTR Shares React After Latest Company Update
The latest filing also showed that Strategy did not issue common shares through its at-the-market programme during the reporting period. In addition, the company did not repurchase any common stock under its authorised buyback programmes. Therefore, the update focused attention on the Bitcoin sale instead of equity activity.
STRC shares remained below their $100 par value despite recent market activity. However, the preferred security recorded modest gains after Binance introduced continuous 24-hour trading support. The stock traded near $88 in premarket trading and posted a gain of less than 1%.
Meanwhile, MSTR shares moved lower after the disclosure reached the market. Premarket data showed the stock trading around $98 with a decline approaching 2%. At the same time, Bitcoin traded near $61,700 and lost more than 2% during the session.
Bitcoin Holdings Record Quarterly Loss Despite Long-Term Treasury Strategy
Strategy also reported an $8.32 billion loss on its Bitcoin holdings for the quarter ended June 30. The filing separated the total into an unrealised loss of about $8.31 billion and a realised loss of approximately $900 million. Consequently, accounting adjustments reflected weaker Bitcoin valuations during the reporting period.
The company reported a carrying value of approximately $49.67 billion for its Bitcoin holdings as of June 30. However, the filing stated that the cost basis exceeded the fair value of the digital assets. Therefore, Strategy expects to recognise a valuation allowance against deferred tax benefits connected to the unrealised losses.
Strategy has continued building one of the world’s largest corporate Bitcoin treasuries despite recent market volatility. Earlier this year, the company indicated that it could sell portions of its Bitcoin holdings to support obligations tied to its digital credit products. The latest transaction followed that framework and demonstrated how Strategy plans to balance treasury management with commitments to preferred security holders.
