Strategy Sells 3,588 Bitcoin to Fund Preferred Payouts

Strategy Inc. disclosed on July 6, 2026 that it had sold 3,588 bitcoin for aggregate net proceeds of $216.0 million during the seven-day period ending July 5. The filing turned the largest public-company bitcoin treasury into an active source of cash for preferred-stock distributions, not merely a reserve accumulated through securities issuance.

The sales were split across two reporting windows. Strategy sold 1,363 BTC from June 29 through June 30 for $80.8 million, at an average net sale price of $59,256 per bitcoin. It then sold 2,225 BTC from July 1 through July 5 for $135.2 million, at an average net sale price of $60,773. The company said sale prices were net of fees and expenses.

A treasury becomes a funding mechanism

The filing said the proceeds funded distributions on preferred stock and replenished the portion of Strategy’s U.S. dollar reserve used for that purpose. At 4:00 p.m. Eastern on July 5, the company reported 843,775 BTC remaining, with an aggregate purchase price of $63.69 billion and an average cost of $75,476 per bitcoin, inclusive of fees and expenses.

A calculation from the filing’s figures shows that the 3,588 BTC sold represented about 0.42% of the 847,363 BTC held immediately before those transactions. That is a limited fraction of the treasury, but the purpose mattered more than the percentage. Strategy had spent years making bitcoin accumulation the center of its capital-markets identity. The July 6 disclosure showed that the same reserve could be monetized to service obligations created by the company’s preferred-stock structure.

That distinction was institutional, not semantic. Investors in Strategy’s common and preferred securities now had to evaluate two linked markets: the value and liquidity of bitcoin, and the company’s ability to finance dividends and interest without issuing securities on unattractive terms. Bitcoin remained the principal reserve asset, but it was also part of the liability-management toolkit.

The policy behind the sale

The transaction followed Strategy’s June 29 Digital Credit Capital Framework. Under that framework, the board authorized bitcoin sales for three specified uses: adding as much as $1.25 billion to the dollar reserve; funding or replenishing cash used for preferred dividends and debt interest; and financing authorized repurchases of preferred or common stock. Strategy said the program had no fixed expiration date and did not obligate it to sell bitcoin.

The July 6 filing reported a $2.55 billion dollar reserve as of July 5 and said the full $1.25 billion reserve-building authorization remained available. This means the reported $216.0 million sale did not reduce that particular authorization, according to the company’s own presentation. It had no sales under its at-the-market share program and no share repurchases during June 29 through July 5.

What the filing did—and did not—establish

Strategy also reported an $8.32 billion loss on digital assets for the quarter ended June 30, consisting of an $8.31 billion unrealized loss and a $0.9 million realized loss. Digital assets had a $49.67 billion carrying value at quarter-end, while the cost basis of the bitcoin then held exceeded fair value. Management said it would record a full valuation allowance against the associated deferred tax benefit and asset.

Those quarterly figures were prepared by management and had not been audited or reviewed by KPMG, a limitation stated in the filing. They do not by themselves prove financial distress, forced selling or a change in Strategy’s long-term bitcoin thesis. What was verified on July 6 was narrower and still consequential: the company used a small portion of its bitcoin reserve to meet preferred-capital cash demands, making two-way treasury management an observed practice rather than only a board-authorized possibility.