Strategy, the publicly traded Bitcoin treasury company led by Michael Saylor, sold 3,588 Bitcoin between June 29 and July 5 for approximately $216 million. The sale was disclosed in an 8-K filing with the U.S. Securities and Exchange Commission on Monday, July 6, and represents the company's second reported Bitcoin disposal in five weeks.
Grayscale Research published a note the same day that reframed what many investors initially read as a distress signal. Zach Pandl, head of research at Grayscale, argued the sale would improve investor confidence in Strategy's financing structure rather than undermine it.
"Recent actions by Strategy, a leading Bitcoin digital asset treasury (DAT) corporation, should restore market confidence over its financing structure and, in our view, may help Bitcoin's price find a more durable bottom," Pandl wrote.
How cash reserves fell before the new framework
The tension behind the sale traces to late May, when Strategy's U.S. dollar cash reserve fell to approximately $870 million, enough to cover roughly six months of preferred equity dividend obligations. The decline raised questions about how the company would meet those commitments without selling shares at depressed valuations or parting with Bitcoin that its executives had publicly refused to sell for years.
In late June, Strategy introduced a new capital management framework, as HODLFM reported. Under that framework, the company stated it would issue shares or sell Bitcoin as needed to maintain at least 12 months of preferred stock dividend cover in U.S. dollar reserves.
The July sale took place across two separate periods. Strategy sold 1,363 BTC at an average price of $59,256 between June 29 and June 30, then a second batch of 2,225 BTC at an average price of $60,773 between July 1 and July 5. Total Bitcoin holdings after both transactions stood at 843,775 BTC at a cumulative average purchase price of $75,476. U.S. dollar reserves now stand at $2.55 billion, the equivalent of approximately 17 months of dividend coverage. The full $1.25 billion capacity under the BTC Monetization Program remains untapped as of the latest filing.
A break from years of buy-only accumulation
The July disposal followed a smaller sale in early June, when Strategy sold 32 Bitcoin for roughly $2.5 million. That transaction was the company's first reported Bitcoin sale since a 2022 tax-loss event, and it reduced holdings from 843,738 BTC to 843,706 BTC. The amount was small but notable because Strategy had built its public identity on an uninterrupted accumulation policy under Saylor. The July sale made the pattern consecutive.
That shift had already drawn external criticism before Monday's filing. Ripple CEO Brad Garlinghouse said in June 2026 that the model of financing Bitcoin purchases through preferred share issuance was harmful to the market. JPMorgan analysts said the launch of Strategy's crypto reserve liquidation mechanism had created a "two-sided risk that could have been avoided." CryptoQuant Head of Research Julio Moreno took a different position. Rather than endorsing a rapid sale to restore reserves, Moreno warned that such a move would ultimately "kill" shareholder value.
The quarter itself had been difficult. Google Finance data shows MSTR fell below $100 for the first time since March 2024 at one point during the period. The stock's market capitalization dropped below the value of its Bitcoin holdings, a loss of the premium that had long supported the company's capital model. Strategy reported an $8.32 billion loss on digital assets for the second quarter, nearly all of it unrealized, and said it would record a full valuation allowance against related deferred tax assets.
Grayscale's case for why the sale could stabilize Bitcoin
Grayscale's research note drew a distinction between two types of selling pressure. A forced, unplanned liquidation by a holder of Strategy's scale would carry a different market impact than a disclosed and structured one. Pandl's argument was that transparency around the company's willingness to sell removes the most destabilizing uncertainty investors had faced: whether Strategy would eventually be cornered into an emergency disposal the market could not absorb.
The company's broader balance sheet supports that framing. Strategy holds Bitcoin valued at roughly $52 billion against approximately $7 billion in debt, with annual preferred equity dividend obligations below $2 billion. According to the Grayscale note, those numbers leave the company with sufficient financial capacity to service both debt and dividend commitments under current conditions.
Market reaction after the filing
STRC closed Tuesday 2.28% lower at $86.56; the pre-market price sits at $85.60. At that discount, Strategy's capacity to raise additional capital through new STRC issuance narrows, and the company may need to offer a higher nominal dividend rate to attract buyers.
Bitcoin recovered from the initial reaction to the disclosure. The asset touched a 24-hour low of $61,275 before it rebounded to near $64,000, according to HODLFM market data. Trading volume rose 77% over the preceding 24 hours. Net inflows also returned to BlackRock's spot Bitcoin ETF after several weeks of outflows, a development Grayscale cited alongside seasonal market patterns as a factor in the rebound.
Binance launched STRC tokenized stock during the same period. The product gives users access to the company's shares without a traditional brokerage account. Andrew Kang was designated Strategy's principal accounting officer effective June 30, after Jeanine Montgomery retired.
Kristian Koch
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