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Strategy Sells 3,588 Bitcoin to Fund Preferred Dividends as Sales Hit Below Cost

The disclosures signal growing dollar cash needs from high-yield preferred securities that could drive further Bitcoin sales beyond the program cap.

Overview

  • Strategy disclosed it sold 3,588 BTC for about $216 million between June 29 and July 5 to pay preferred‑security dividends, according to its SEC filing and company statements.
  • The July portion included 2,225 BTC sold at an average price of $60,773, which is below the company’s $75,476 aggregate cost basis and realizes losses versus prior purchases.
  • On June 29 the board approved a Digital Credit Capital Framework that authorizes a BTC Monetization Program capped at $1.25 billion for reserve‑related sales, but some recent transactions were classified as dividend payments and accounted outside that cap.
  • Strategy reported roughly 843,000–847,000 BTC remaining and about $2.55 billion in USD reserves while booking an $8.32 billion quarterly loss on digital assets that leaves its Bitcoin cost basis above current fair value.
  • Analysts warn the company’s large dollar dividends, estimated near $1.5 billion a year, create structural cash pressure that could force further controlled sales, affect the firm’s refinancing options, and alter investor views of its long‑term accumulation strategy.