Overview
- Strategy sold 3,588 BTC for roughly $216 million between June 29 and July 5 to pay dividends on its STRC preferred securities and to top up its U.S. dollar reserve.
- The company reported it holds 843,775 BTC and had a $2.55 billion USD reserve as of July 5 while booking an $8.32 billion second‑quarter loss on its digital assets that is almost entirely unrealized.
- Those sales were executed under a newly announced Digital Credit Capital Framework, which authorizes up to $1.25 billion of controlled bitcoin monetization and marks a break from the company’s prior ‘buy and never sell’ posture.
- Markets reacted with further pressure on MSTR shares and on valuation metrics, with mNAV near 0.99, and analysts are split between viewing the moves as prudent liquidity management or a warning about dilution and refinancing risk given high preferred yields.
- The change tightens Strategy’s reliance on capital markets to fund recurring cash obligations from high‑yield preferreds, so investors should watch the pace of future sales, STRC trading levels, and any shifts in credit access or dividend coverage.