Strategy Inc. sold 32 BTC for $2.5 million during the May 26-May 31 period to fund preferred stock dividends, according to a June 1 SEC filing. The company sold the bitcoin at an average price of $77,135 while maintaining total holdings of 843,706 BTC. The sale highlights treasury management decisions facing bitcoin-holding companies as they balance dividend obligations, liquidity needs, and long-term BTC exposure amid evolving institutional lending options.
Strategy Sells 32 BTC to Fund STRC Preferred Stock Dividends
Strategy Inc. (Nasdaq: MSTR) disclosed in a June 1 Securities and Exchange Commission filing that it sold 32 BTC for $2.5 million. The proceeds are expected to fund preferred stock distributions. The sale was small beside Strategy's 843,706 BTC balance. Still, it drew attention as Strategy has built its public identity around bitcoin accumulation, while Executive Chairman Michael Saylor has helped anchor market expectations around long-term BTC holding.
The filing showed Strategy sold BTC at an average price of $77,135 during the May 26-May 31 period. It also sold 801,994 MSTR shares, generating $128.3 million in net proceeds. Strategy reported a $900 million U.S. dollar reserve for preferred stock dividends and debt interest. The company also maintained STRC's annual dividend rate at 11.50% and declared a $0.958333333 cash dividend per STRC share for June.
With $17.51 billion in remaining STRC issuance capacity, investors are watching how Strategy balances dividends, dilution, reserves, and BTC exposure. The preferred stock introduces recurring distribution obligations alongside the company's BTC holdings. That makes liquidity planning more central to the investment case, especially as reserves, share issuance, dividends, and bitcoin exposure interact.
Institutional Bitcoin-Backed Lending Emerges as Alternative to Asset Sales
Adam Reeds, CEO and co-founder of bitcoin-backed lending platform Ledn, said the sale highlights a question facing a growing number of bitcoin treasury companies. "Strategy selling bitcoin to fund a dividend, even an amount this small, gets at the question every bitcoin treasury now has to answer: when you need cash, do you sell the asset you most want to hold, or borrow against it?" Reeds said. His argument places Strategy's sale inside a broader shift from simple holding strategies toward more complex treasury management.
The executive noted: "For years the honest answer was sell, because serious treasuries had no borrowing option that cleared their bar." "After 2022, no treasurer wanted to post bitcoin to a lender that might rehypothecate it and not be there when the loan came due. That is no longer true," he added.
Reeds said: "Institutional-grade bitcoin-backed credit now comes with the assurances these borrowers always needed: collateral in segregated addresses with zero rehypothecation, proof of reserves, and a rated structure behind it." "The more sophisticated these treasuries become, the less selling should be the default, because they no longer have to choose between liquidity and conviction," he further shared.
FAQ
Why did Strategy sell 32 BTC in May?
Strategy sold 32 BTC for $2.5 million during the May 26-May 31 period to fund preferred stock distributions, according to a June 1 SEC filing. The company sold the bitcoin at an average price of $77,135 while maintaining total holdings of 843,706 BTC.
What is Strategy's current dividend rate for STRC preferred stock?
Strategy maintained STRC's annual dividend rate at 11.50% and declared a $0.958333333 cash dividend per STRC share for June. The company reported a $900 million U.S. dollar reserve for preferred stock dividends and debt interest.
How much bitcoin does Strategy hold after the sale?
Strategy holds 843,706 BTC after selling 32 BTC during the May 26-May 31 period. The company also sold 801,994 MSTR shares, generating $128.3 million in net proceeds, and maintains $17.51 billion in remaining STRC issuance capacity.
