Michael Saylor's Strategy Sells 3,588 BTC to Fund Digital Credit Dividends

Strategy sold 3,588 bitcoin between June 29 and July 5, generating about $216 million to cover dividend payments tied to its Digital Credit securities, according to Michael Saylor and company filings. The sales cut Strategy's bitcoin holdings to 843,775 BTC, its first meaningful reduction after an earlier symbolic sale of 32 BTC. The company's U.S. dollar cash balance rose to roughly $2.55 billion. Two tranches were executed during the period: 1,363 BTC sold from June 29 to June 30 for about $80.8 million, followed by 2,225 BTC sold from July 1 to July 5 for approximately $135.2 million. Saylor said the proceeds funded dividends for STRF, STRE, STRK, and STRD, and also covered June's monthly STRC dividend. Strategy reported no bitcoin purchases over the same window. The filing also said the company did not sell stock through its at-the-market program and did not repurchase shares under existing buyback authorizations. The transactions followed the rollout of an updated capital management framework that allows Strategy to issue shares or sell bitcoin as needed to keep enough cash on hand for dividend obligations, after prior reports pointed to pressure on cash reserves in May. In its quarterly disclosure for the period ended June 30, Strategy reported an $8.32 billion loss on its bitcoin position, including an $8.31 billion unrealized loss and about $900 million in realized losses. The carrying value of its bitcoin holdings was $49.67 billion as of June 30, with the filing noting the cost basis exceeded fair value, prompting a valuation allowance against related deferred tax assets. Market focus stayed on the sale. Grayscale Head of Research Zach Pandl said the revised financing framework improved confidence in Strategy's funding structure. Santiment said bitcoin rebounded after briefly dipping below $61,500 following the news.