Strategy Inc. (Nasdaq: MSTR) sold approximately $135 million in bitcoin between June 29 and July 5 without using its previously announced $1.25 billion BTC Monetization Program, according to VanEck Head of Digital Assets Research Matthew Sigel. The company sold 3,588 BTC in two transactions—1,363 BTC at an average price of $59,256 and 2,225 BTC at an average of $60,773—to fund preferred stock dividends and replenish its USD reserve to $2.55 billion. Sigel stated on Scott Melker's podcast on Sunday that the sales were executed outside the board-authorized monetization framework, meaning the full $1.25 billion selling capacity remains available. The transactions reduced Strategy's bitcoin holdings from 847,363 BTC to approximately 843,775 BTC, while the company faces about $1.5 billion in annual dividend obligations across its preferred stock instruments that its software business alone cannot cover.
Strategy Executed Two Bitcoin Sales Totaling $216 Million
Strategy Inc. conducted two separate bitcoin sales during the period from June 29 to July 5. The first transaction involved 1,363 BTC at an average price of $59,256, followed by a second sale of 2,225 BTC at an average of $60,773. The combined proceeds of approximately $216 million were directed toward preferred stock distributions and replenishing the company's USD reserve to $2.55 billion. Following these sales, Strategy's bitcoin holdings decreased from 847,363 BTC to roughly 843,775 BTC, maintaining its position as the largest corporate bitcoin holder.
BTC Monetization Program Remains Fully Available
The BTC Monetization Program is a capital management framework approved by Strategy's board that permits but does not require the company to sell bitcoin to raise as much as $1.25 billion. The program authorizes sales for the company's reserve, preferred dividend and interest payments, or repurchases of its digital credit securities and common stock. According to Sigel, the recent sales were executed outside this program, leaving the entire $1.25 billion authorization intact. The two mechanisms combined provide Strategy with selling flexibility beyond what many shareholders previously assumed.
Analysts Offer Divergent Views on Sales Framework
Sigel characterized Strategy as "a hedge fund that can trade five things: its own capital stack and Bitcoin," stating he pays "very low" price-to-earnings ratios for such vehicles. JPMorgan analysts noted that codifying a bitcoin sale policy introduces "avoidable two-way risk" into crypto markets. Grayscale argued the $216 million sale "reduces tail risk" by pre-funding roughly 17 months of dividends and easing pressure for forced selling into weakness. Sigel's assessment positions Strategy as an actively managed vehicle that trades its common stock, four preferred instruments, and bitcoin stack against one another.
FAQ
What did Strategy sell between June 29 and July 5?
Strategy sold 3,588 BTC in two transactions totaling approximately $216 million. The first sale involved 1,363 BTC at an average price of $59,256, and the second sale involved 2,225 BTC at an average of $60,773. Proceeds funded preferred stock dividends and replenished the company's USD reserve to $2.55 billion.
Why does Strategy's BTC Monetization Program remain at $1.25 billion?
According to VanEck's Matthew Sigel, the recent bitcoin sales were executed outside the board-authorized $1.25 billion BTC Monetization Program. Because the sales did not count against this program, the full $1.25 billion selling capacity remains available for future use.
How much bitcoin does Strategy currently hold?
Following the sales, Strategy's bitcoin holdings decreased from 847,363 BTC to approximately 843,775 BTC. The company remains the largest corporate holder of bitcoin despite the reduction.
