MicroStrategy Sells $216 Million in Bitcoin to Fund Preferred Stock Dividends

Strategy sold 3,588 bitcoin for $216 million on July 5, 2026, to fund dividend payments for its preferred stock offerings, according to news.bitcoin.com. The company used these proceeds to cover Q2 quarterly dividends for STRF, STRE, STRK, and STRD shares, as well as the full June monthly dividend for STRC preferred shares.

Following the sale, Strategy holds 843,775 BTC and $2.55 billion in cash reserves, news.bitcoin.com reports. The transaction marks a significant increase in scale compared to a previous sale between May 26 and May 31, 2026, where the company sold 32 BTC for approximately $2.5 million, as detailed in an SEC Form 8-K filing.

Shift in Bitcoin Reserve Management

The July 5 sale is the third time Strategy has sold bitcoin since December 2022, according to news.bitcoin.com. This activity follows a stated pivot from the company’s long-standing “never sell” approach. CNBC reports that Strategy is now focusing on actively managing its balance sheet to potentially improve bitcoin-per-share metrics or strengthen its financial position.

CEO Phong Le explained the strategy during an early May earnings call, stating:

“We want to be net aggregators of bitcoin – increasing our total bitcoin, but more importantly, increasing our bitcoin per share because we think that is what is going to be most accretive long term for MSTR,”

Phong Le

The company is utilizing STRC, a yield-paying security, to allow investors to earn income backed by its bitcoin holdings. CNBC reports the goal is to use investor demand for income products to grow the bitcoin stack faster than a simple buy-and-hold method.

Comparison of Recent Asset Sales

The scale and pricing of Strategy’s recent sales show a sharp divergence in both volume and market conditions. According to news.bitcoin.com and CNBC, the two most recent divestments differ as follows:

• May 26–31, 2026: Sold 32 BTC for $2.5 million at an average price of $77,135 per coin.
• July 5, 2026: Sold 3,588 BTC for $216 million at an average price of approximately $60,201 per coin.

The lower average price in July indicates a different bitcoin price environment compared to the late May window, according to news.bitcoin.com. Additionally, during the May period, Strategy sold 801,994 shares of common stock to raise $128.3 million, CNBC reports.

Market Reaction and Financial Obligations

The announcement of the July sale coincided with a price drop in the cryptocurrency. news.bitcoin.com reports that BTC fell below $63,000, dipping into the low $62,000 range following the announcement, though it briefly regained strength around that level.

Strategy’s use of preferred shares—STRF, STRE, STRK, STRD, and STRC—allows the company to raise capital without selling common stock. However, these instruments require regular dividend payments. news.bitcoin.com notes that when cash flow tightens or prices drop, Strategy must choose between using cash reserves, raising new capital, or selling bitcoin to meet these obligations.

The company also directed $650 million of new MSTR proceeds to its U.S. dollar reserves and used bitcoin proceeds to repurchase STRC preferred shares.

Previous sales were rare; the last instance prior to 2026 occurred in December 2022. CNBC attributes that sale to a bear market characterized by interest rate hikes and the collapse of the FTX exchange.