Strategy sold 3,588 Bitcoin for net proceeds of $216 million during the week ending July 5, 2026. The company announced the sale on the morning of July 6, 2026, stating the proceeds would fund dividend payments on its preferred stock and replenish its U.S. dollar reserves.

This sale represents the largest liquidation of crypto in the company's six-year history of accumulating Bitcoin. Strategy's U.S. dollar reserves stood at $2.55 billion as of July 5, 2026. Strategy's shares fell nearly 5% at market open on July 6, 2026, before rebounding to approximately $100. Bitcoin's price also fell nearly 1% in the first hour after the announcement, then climbed back to just above $62,000.

On June 29, 2026, Strategy published a Digital Credit Capital Framework, authorizing the sale of up to $1.25 billion in Bitcoin. The company stated that proceeds from these authorized sales would be earmarked for paying dividends, interest expenses, and stock buybacks. Strategy hiked the annual dividend rate for its perpetual preferred stock, STRC, to 12% at that time. STRC, nicknamed "Stretch," traded at $89 as of July 6, 2026, below its $100 peg.

Strategy has authorized $2 billion in stock buybacks under its new capital management framework. The company also stated it would have enough resources to cover 26 months of dividend costs if it accessed its Bitcoin stash. Strategy shares fell 2% in pre-market trading to $98.88 on July 6, 2026, and the company's stock price declined 75% in the 12 months prior to July 6, 2026.

Strategy began buying Bitcoin for its balance sheet in 2020. The company holds 843,775 BTC with a total cost basis of $63.69 billion, representing an average purchase price of $75,476 per Bitcoin. The latest Bitcoin sales were executed at an average price of $60,000 per BTC and represented 0.42% of Strategy's overall stockpile. Bitcoin's price was approximately $61,800 on July 6, 2026.

Strategy booked an $8.32 billion loss on its digital assets for the second quarter of 2026, mostly unrealized. Bitcoin's price dropped more than 43% between October 10, 2025, and July 6, 2026. During the same period, Strategy's stock price dropped more than 37%. On October 10, 2025, the crypto market saw more than $19 billion in leveraged positions liquidate. Bitcoin fell by 2.2% in the 24 hours after the June 29, 2026, announcement of the Digital Credit Capital Framework. Strategy previously sold 32 Bitcoin for $2.5 million in June 2026.

Why It Matters

Strategy's sale of Bitcoin marks a shift in its capital management strategy, moving from an accumulation phase to utilizing its digital asset holdings for corporate financial obligations such as dividend payments and replenishing cash reserves. This action follows the establishment of a Digital Credit Capital Framework that authorizes Bitcoin sales and comes after a period of decline in both Bitcoin's price and Strategy's stock value. The decision to sell Bitcoin, after years of consistent accumulation, provides capital for shareholder returns and liquidity needs. The liquidation affects a portion of Strategy's overall Bitcoin holdings, which represent about 4% of the total Bitcoin supply.