Strategy (MSTR) Sells 3,588 Bitcoin to Cover Preferred Dividends

Bitcoin Magazine Strategy (MSTR) Sells 3,588 Bitcoin to Cover Preferred Dividends Strategy sold 3,588 bitcoin for $216 million to fund dividends on its preferred securities, the company disclosed in a Form 8-K on July 6, 2026. The sale marks the largest bitcoin disposal in the company’s history and its most direct admission that its dividend obligations now shape its treasury. Chairman Michael Saylor posted about the transaction on social media. As of July 5, the company held 843,775 bitcoin in its reserves and $2.55 billion in cash. Saylor said the proceeds covered second-quarter dividends on four preferred instruments and the full June payment on a fifth. The disclosed sale funded quarterly dividends on STRF, STRE, STRK, and STRD. It also covered the monthly dividend on STRC . Together these securities form the core of what Strategy calls its Digital Credit business. Each instrument carries a distinct payout structure. STRF, the senior tier, pays a fixed 10% annual dividend on a $100 stated amount. STRE pays 10% a year on a €100 stated amount, denominated in euros. STRK pays 8% and converts to common stock if shares reach $1,000. STRD pays 10% but is not cumulative, giving the board room to skip a payment. STRC sits in the middle of the stack and pays a variable rate near 12%, reset to keep the security trading close to its $100 par. The board recently shifted STRC to semi-monthly payments. JUST IN: Michael Saylor announces Strategy sold 3,588 Bitcoin for $216 million to fund dividends for their digital credit securities pic.twitter.com/QQl2Jih71A — Bitcoin Magazine (@BitcoinMagazine) July 6, 2026 None of the preferred securities is backed by the company’s bitcoin. Each holds only a claim on residual assets. Why Strategy is selling Strategy is the largest corporate holder of bitcoin. The company has built its treasury through repeated stock and debt offerings. Its bitcoin sits at a cost basis near $63.9 billion, or roughly $75,700 a coin. That model created a growing cash bill. The preferred securities pay dividends in cash, not bitcoin. Strategy’s software business does not generate enough to cover them. Grayscale’s head of research, Zach Pandl, estimated the annual dividend load at $1.5 billion. When cash reserves run short, the company must raise more capital or sell coins. For years Saylor pledged to never sell. That stance ended in late May 2026. Strategy sold 32 bitcoin for about $2.5 million, its first disposal since 2022, to fund preferred dividends. The move broke the pledge and drew wide attention. Saylor framed it as a signal of commitment to preferred holders rather than a retreat from bitcoin. “Our goal is to make STRC the best credit instrument in the world,” he said at the time. The July sale dwarfs that first step. At 3,588 coins and $216 million, it is roughly a hundred times larger. Buying and selling at once Strategy continues to accumulate even as it sells. After the May sale, the company bought 1,550 bitcoin for $101.3 mill