Strategy (NASDAQ: MSTR) filed an 8-K with the U.S. SEC on July 6, disclosing the sale of 3,588 bitcoins for $216 million to pay dividends on five preferred shares: Q2 quarterly dividends for STRF, STRE, STRK, and STRD, and the full-month June dividend for STRC.
Yield Terms for STRF, STRE, STRK, STRD, and STRC
According to Strategy’s 8-K, proceeds from this sale cover dividends for the following five preferred securities:
STRF (Senior Fund): Annual fixed dividend of 10%, par value $100
STRE (Euro Fund): Annual fixed dividend of 10%, par value €100
STRK: Dividend 8%; convertible into common stock if common stock price reaches $1,000
STRD: Dividend 10%, non-cumulative, board may skip one payment
STRC: Floating rate of approximately 12%, regularly adjusted to keep bond trading price near par of $100; the board recently changed to a semi-monthly payment cycle
None of these five preferred securities are collateralized by Strategy’s bitcoins; each only has a claim on the company’s remaining assets.
Strategy’s Dividend Expenditure Comes from Cash Pool, New Financing Continues to Accumulate Bitcoin
(Source: Strategy)
Strategy’s financial operations exhibit a “simultaneous buying and selling” dual-track structure: after selling 32 bitcoins (approximately $2.5 million) in May to pay dividends, the company immediately purchased 1,550 bitcoins (roughly 50 times the amount sold) for $101.3 million; in May, it also executed a $2 billion bitcoin purchase, and in April a $2.54 billion purchase.
The logic of this model is: the existing cash pool is used to pay preferred stock dividends, while new common or preferred stock issuances raise funds to accumulate bitcoins; when market capitalization conditions are favorable, large-scale sales can be avoided; when market funding channels tighten, bitcoin becomes a cash source. The July sale of 3,588 BTC indicates that the second scenario was faced this quarter.
Strategy’s Bitcoin Holdings and Saylor’s Commitment Shift
As of July 5, 2026, Strategy held 843,775 bitcoins at a cost of approximately $63.9 billion (average ~$75,700 per coin), with cash reserves of $2.55 billion. Michael Saylor had long publicly committed to “never selling bitcoin,” but this stance changed in late May 2026 — the company sold 32 bitcoins (its first sale since 2022), with Saylor explaining it as a commitment to preferred stock holders, not an abandonment of the bitcoin strategy.
The July sale of 3,588 bitcoins was announced after Saylor posted on X (accompanied by a chart of Strategy’s orange-dot bitcoin acquisitions), a move traders had previously interpreted as a harbinger of bitcoin accumulation, but this announcement conveyed a sale.
Frequently Asked Questions
Why did Strategy sell bitcoins, and why was this the largest ever?
According to Strategy’s 8-K, the sale of 3,588 bitcoins ($216 million) is intended to pay Q2 dividends for STRF, STRE, STRK, STRD and the June dividend for STRC; Strategy’s software business revenue is insufficient to cover preferred stock dividends. Grayscale head of research Zach Pandl estimates annual dividend expenditures at approximately $1.5 billion. This sale is roughly 100 times larger than the first sale in May (32 bitcoins), making it the largest single sale of bitcoins ever.
What are the characteristics of Strategy’s five preferred stocks (STRF, STRE, STRK, STRD, STRC)?
According to Strategy’s public disclosures, STRF and STRE each pay dividends at a fixed annual rate of 10%; STRK pays 8% dividends and is convertible into common stock at $1,000; STRD pays 10% non-cumulative dividends, with the board able to skip one payment; STRC is a floating-rate security of approximately 12% with semi-monthly payments. None of the five preferred stocks are collateralized by bitcoins; they have claims on the company’s remaining assets.
What is Strategy’s current bitcoin position and financial condition?
According to Strategy’s 8-K filing on July 6, 2026, as of July 5 it holds 843,775 bitcoins with an aggregate cost of approximately $63.9 billion (average ~$75,700 per coin), and cash reserves of $2.55 billion; cash reserves cover approximately 17 months of preferred stock dividends and interest expenses. Specific financial data is subject to official SEC filings.
