Strategy Sells 3,588 BTC in Largest Bitcoin Disposal Yet

Strategy disclosed on July 6 that it sold 3,588 Bitcoin for approximately $216 million last week, its largest single Bitcoin disposal on record. The company said the proceeds were used to fund preferred stock dividends and replenish its U.S. dollar reserve.

The announcement reignited debate over the sustainability of the company's Bitcoin treasury model at a time when BTC remains well below Strategy's average cost basis.

The Sale: Two Tranches, One Filing

• Strategy sold 1,363 Bitcoin between June 29 and June 30 at an average price of $59,256, raising $80.8 million.
• It then sold another 2,225 Bitcoin between July 1 and July 5 at an average price of $60,773, raising an additional $135.2 million.

Both tranches were disclosed together in a Form 8-K filing with the U.S. Securities and Exchange Commission on July 6.

Together, the sales represented about 0.42% of Strategy's total Bitcoin stack. As of July 5, the company held 843,775 Bitcoin and $2.55 billion in its U.S. dollar reserve.

According to Strategy, the proceeds settled Q2 dividends on STRF, STRE, STRK, and STRD, and the full monthly dividend for June on STRC. These five instruments form what the company calls its Digital Credit business, each carrying distinct payout structures and dividend rates.

The sales were executed at prices significantly below Strategy's stated average acquisition cost. According to Executive Chairman Michael Saylor, the company acquired its holdings at an average purchase price of $75,476 per Bitcoin, representing a total cost of about $63.7 billion. The July sale prices of $59,256 and $60,773 sit roughly $14,000 to $15,000 below that figure.

The company also disclosed an $8.32 billion loss on its bitcoin holdings for the second quarter, as Bitcoin's price fell from about $68,000 on April 1 to close June at roughly $60,000. Of that figure, $8.31 billion was unrealized.

Grayscale's head of research, Zach Pandl, estimated the annual dividend load at $1.5 billion. The preferred securities pay dividends in cash, not bitcoin. Strategy's software business does not generate enough to cover them. When cash reserves run short, the company must raise more capital or sell coins.

A Reversal of a Long-Held Stance

For years, Saylor pledged to never sell. That stance ended in late May 2026, when Strategy sold 32 Bitcoin for about $2.5 million, its first disposal since 2022, to fund preferred dividends. The July sale dwarfs that first step. At 3,588 coins and $216 million, it is roughly a hundred times larger.

Saylor stated that the transaction indicates a significant evolution in the company's financial approach, describing the shift as a transition from a strict buy-and-hold accumulation model to active balance sheet monetization.

The latest disposal was structured under Strategy's new BTC Monetization Program, which authorizes capital drawdowns of up to $1.25 billion.

• Bitcoin had rallied over the weekend to nearly $64,000, but lost ground after Strategy reported the sale of more than 3,000 BTC. Bitcoin dropped about $1,000 on the news to $61,900. Buyers returned mid-session, partially recovering losses.
• Strategy's stock gained 21.1% overall the prior week following its Digital Credit Capital Framework announcement, closing Thursday at $100.77. However, MSTR remains 73.7% down over the past year.

On the analyst side, the response was split. Benchmark reiterated its Buy rating on Strategy with a $570 price target following the Digital Credit Capital Framework announcement, while TD Cowen lowered its price target to $260 from $400, citing a weaker Bitcoin price outlook.

Analysts at Bernstein argued that Strategy's balance sheet makes forced selling unlikely, noting the firm had bought about 175,000 BTC for roughly $14 billion so far in 2026.

The prevailing read among market participants is that investors have largely priced in a two-directional Strategy and are treating these controlled sales as liquidity management rather than a loss of conviction.

Bitcoin ETF Context

The Strategy sale landed against an already difficult backdrop for Bitcoin institutional flows.

• U.S. spot Bitcoin ETFs recorded net outflows of $4.5 billion in June, marking their largest monthly withdrawal since the products launched in January 2024. BlackRock's IBIT accounted for $3.55 billion of those outflows – the largest single-fund contributor.
• Bitcoin ETF inflows returned on July 2, as U.S. spot funds drew $221.72 million, snapping a 10-day, $2.7 billion outflow streak, after a weak June jobs report showing only 57,000 non-farm payrolls reduced Federal Reserve rate-hike pressure.

Despite the institutional selling, large Bitcoin holders accumulated more than 270,000 BTC over two weeks while spot premium, a gauge of how hard U.S. buyers are bidding, stayed negative, meaning the buying was not coming from spot desks. Analysts at Bitfinex noted this pattern has historically appeared near past cycle lows.

Sources

• CoinDesk – Michael Saylor's Strategy dramatically ups pace of bitcoin sales, raising $216 million https://www.coindesk.com/markets/2026/07/06/michael-saylor-s-strategy-dramatically-ups-pace-of-bitcoin-sales-raising-usd216-million
• CoinDesk – Bitcoin whales bought $16.7 billion of BTC in two weeks even as ETFs bled a record $4 billion https://www.coindesk.com/markets/2026/07/03/bitcoin-whales-bought-270-000-btc-in-two-weeks-even-as-etfs-bled-a-record-usd4-billion
• Invezz – Strategy (MSTR) stock falls as company sells $216M worth of Bitcoin https://invezz.com/news/2026/07/06/strategy-mstr-stock-falls-as-company-sells-216m-worth-of-bitcoin/
• TechTimes – Bitcoin ETF Outflow Streak Ends at $2.7B as June Jobs Data Cools Rate Risk https://www.techtimes.com/articles/319653/20260703/bitcoin-etf-outflow-streak-ends-27b-june-jobs-data-cools-rate-risk.htm