Bitcoin treasury company Strategy sold 3,588 BTC for approximately $216 million between June 29 and July 5, according to an 8-K filing with the Securities and Exchange Commission disclosed Monday. The firm executed the sales in two tranches: 1,363 BTC for $80.8 million at an average price of $59,256 per bitcoin between June 29 and June 30, and 2,225 BTC for $135.2 million at an average price of $60,773 between July 1 and July 5. Proceeds from the bitcoin sales were used to fund payment of distributions on preferred stock and to replenish a portion of its USD reserve to $2.55 billion as of July 5. The sale marks a shift in Strategy's capital allocation approach amid ongoing market volatility, as the company's total bitcoin holdings—now reduced to 843,775 BTC purchased at an average price of $74,476—carry approximately $11.4 billion in paper losses at current prices.
Strategy Executes Two-Tranche Bitcoin Sale in Late June and Early July
Strategy disclosed the bitcoin sales in an SEC 8-K filing on Monday. The first tranche involved 1,363 BTC sold for $80.8 million between June 29 and June 30 at an average price of $59,256 per bitcoin. The second tranche comprised 2,225 BTC sold for $135.2 million at an average price of $60,773 between July 1 and July 5. The combined transactions totaled 3,588 BTC for approximately $216 million.
Current Holdings Stand at 843,775 BTC with $11.4 Billion Paper Losses
Following the sales, Strategy has reduced its total bitcoin holdings to 843,775 BTC, according to the company's co-founder and executive chairman Michael Saylor. The holdings were acquired at an average price of $74,476 per bitcoin for a total cost of approximately $63.7 billion, including fees and expenses. At current prices, the holdings are worth around $52.3 billion, representing paper losses of approximately $11.4 billion. Strategy's bitcoin position is equivalent to more than 4% of bitcoin's 21 million supply cap.
Company Introduces Digital Credit Capital Framework and Repurchase Programs
Strategy announced a new Digital Credit Capital Framework last week, which includes a board-approved policy requiring its USD reserve to be used only for preferred stock dividends and interest payments. The reserve must cover at least 12 months of those obligations and stood at $2.55 billion as of June 28, up from $1.4 billion a week earlier. The company also authorized a $1 billion Digital Credit Securities Repurchase Program covering STRC, STRF, STRD and STRK, with STRC expected to be the initial priority.
A new STRC Dividend Policy gives management discretion to review the dividend rate monthly based on market conditions, bitcoin prices, credit spreads, reserve coverage, and other factors. The dividend will not automatically increase if STRC trades below its $100 par value. STRC currently offers an annualized rate of 12% but has struggled to regain par since mid-May. The security recovered to close at $87.87 on Thursday, having previously dropped to a new low of $71.25 as bitcoin fell below $60,000.
Strategy also approved a separate $1 billion Class A common stock repurchase program last week, which will not be funded from the USD reserve. The company introduced a BTC Monetization Program allowing it to sell bitcoin to raise up to $1.25 billion for the reserve, preferred stock dividends and interest payments, or repurchases of digital credit securities and common stock. As of July 5, the full amount of this capacity remains available, the firm said Monday.
Bitcoin Drops 2% Following SEC Filing Disclosure
Bitcoin dropped around 2% on Monday immediately following the filing disclosure, according to The Block's BTC price page. Michael Saylor posted a Strategy bitcoin acquisition tracker chart to X on Sunday with the caption "Bitcoin is digital energy." In a separate post, Saylor argued that Bitcoin's next phase of growth will be driven less by protocol changes and halving cycles and more by institutional capital, credit markets, and financial infrastructure built around the network.
Analysts Assess New Bitcoin Sale Policy and Balance Sheet Strength
The formalization of Strategy's bitcoin sale policy introduces "avoidable two-way risk" into crypto markets, as the company could now become both a buyer and seller of bitcoin, analysts at JPMorgan said. However, the firm has bought about 175,000 BTC for roughly $14 billion so far in 2026. Analysts at Bernstein argued Monday that Strategy's balance sheet makes forced selling unlikely.
On Tuesday, Benchmark reiterated its Buy rating on Strategy with a $570 price target, citing the company's new Digital Credit Capital Framework. TD Cowen cut its Strategy price target to $260 from $400, citing a lower bitcoin price forecast.
Strategy's stock gained 21.1% overall last week following its Digital Credit Capital Framework announcement, closing on Thursday at $100.77, according to The Block's MSTR price page. However, it remains 73.7% down over the past year. Bitcoin rose around 3% during the same period last week.
Per Bitcoin Treasuries data, 197 public companies have adopted some form of bitcoin acquisition model. Tether-backed Twenty One, Metaplanet, MARA, and Adam Back and Cantor Fitzgerald-backed Bitcoin Standard Treasury Company make up the rest of the top 5, with 43,514 BTC, 43,000 BTC, 36,303 BTC, and 30,021 BTC, respectively.
FAQ
How much bitcoin did Strategy sell between June 29 and July 5?
Strategy sold a total of 3,588 BTC for approximately $216 million in two tranches. The first tranche involved 1,363 BTC sold for $80.8 million at an average price of $59,256 per bitcoin between June 29 and June 30. The second tranche comprised 2,225 BTC sold for $135.2 million at an average price of $60,773 between July 1 and July 5.
What are Strategy's current bitcoin holdings and paper losses?
Following the sales, Strategy holds 843,775 BTC purchased at an average price of $74,476 per bitcoin for a total cost of approximately $63.7 billion, including fees and expenses. At current prices, the holdings are worth around $52.3 billion, resulting in paper losses of approximately $11.4 billion.
What is Strategy's new Digital Credit Capital Framework?
Strategy's Digital Credit Capital Framework includes a board-approved policy requiring its USD reserve to be used only for preferred stock dividends and interest payments, with the reserve covering at least 12 months of obligations. As of June 28, the reserve stood at $2.55 billion. The company also authorized a $1 billion Digital Credit Securities Repurchase Program and a $1 billion Class A common stock repurchase program, along with a BTC Monetization Program allowing bitcoin sales to raise up to $1.25 billion.
