Strategy (MSTR), the largest corporate holder of Bitcoin, disclosed on Monday that it sold 3,588 Bitcoin for approximately $216 million last week. The sales were executed under a newly introduced treasury framework designed to support preferred stock obligations and strengthen the company's cash reserves. The announcement sent MSTR shares down 2% in Monday trading.
According to an SEC filing, the company sold 1,363 Bitcoin between June 29 and June 30 for $80.8 million at an average price of $59,256 per coin. It then sold an additional 2,225 Bitcoin between July 1 and July 5 for $135.2 million at an average price of $60,773 per coin. These transactions reduce Strategy's total holdings to 843,775 Bitcoin.
Executive Chairman Michael Saylor noted that the company acquired its Bitcoin holdings at an average purchase price of $74,476 per coin, representing a total cost of approximately $63.7 billion, including fees and expenses. At current market prices, Strategy's Bitcoin holdings are valued at roughly $52.3 billion, reflecting a significant unrealized loss.
New Treasury Framework: Digital Credit Capital Framework
The Bitcoin sale follows Strategy's June 29 announcement of its Digital Credit Capital Framework, a financial restructuring aimed at strengthening the company's balance sheet and reassuring investors. Under this new policy, proceeds from Bitcoin sales are used to fund distributions on preferred stock and replenish part of the company's US dollar reserve, which stood at $2.6 billion as of July 5. The reserve can only be used to pay preferred stock dividends and interest payments and must be sufficient to cover at least 12 months of those obligations.
The company also introduced a BTC Monetization Program that allows it to sell up to $1.3 billion worth of Bitcoin to support the reserve, fund preferred stock dividends and interest payments, or repurchase digital credit securities and common stock. As of July 5, none of that capacity had been used beyond the latest sales. Additionally, Strategy authorized separate $1 billion repurchase programs for digital credit securities and Class A common stock.
This strategic shift marks a notable departure from Strategy's long-standing policy of accumulating Bitcoin without selling. For context, the company's previous rare sale was covered in MSTR Stock Jumps 5.4% as Strategy Resumes Bitcoin Accumulation After Rare Sale.
Quarterly Losses Reflect Weaker Bitcoin Prices
In its second-quarter financial update, Strategy reported an $8.3 billion loss on digital assets, consisting of an $8.3 billion unrealized loss and a $0.9 million realized loss. The company said the market value of its Bitcoin holdings fell below their purchase cost at the end of the quarter, prompting it to fully offset the related deferred tax benefit with a valuation allowance.
Strategy controls more than 4% of Bitcoin's maximum supply of 21 million coins. Bitcoin fell around 2% following the filing, while MSTR shares declined 2% in trading after closing 7.9% higher on Thursday. Robinhood Markets and Coinbase Global each rose 3% and 1%, respectively.
Analysts Assess Impact of Bitcoin Sales
In a social media post, Saylor said Bitcoin's next phase of growth would be driven less by protocol changes and halving cycles and more by institutional capital, credit markets, and financial infrastructure. The company's decision to formalize Bitcoin sales drew mixed reactions from analysts.
JPMorgan said the policy introduces "avoidable two-way risk" because Strategy could now become both a buyer and seller of Bitcoin. Bernstein, however, said before the latest disclosure that Strategy was unlikely to face forced Bitcoin sales, citing its liquidity position and reserve coverage. The firm noted that Strategy has accumulated about 175,000 Bitcoin for roughly $14 billion so far in 2026 and maintained its $150,000 year-end Bitcoin price target.
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. For broader market context, see Bitcoin Stalls Below $65K: Geopolitical Jitters, Weak Institutional Demand, and Strategy Concerns.
The new framework also aligns with broader corporate treasury trends, as discussed in Broadcom-Apple Deal Extended to 2031; Strategy Sells $216M in Bitcoin. Meanwhile, analysts continue to debate the implications for MSTR stock, with some viewing the sales as a prudent liquidity measure and others as a signal of weakening conviction in Bitcoin's near-term appreciation.
This article is for informational purposes only and does not constitute financial advice.
