Strategy has sold thousands of Bitcoin to enhance finances, shifting from a buy-and-hold strategy to fund dividends and buybacks.
Overview
- Strategy has sold thousands of Bitcoin since initiating its BTC Monetization Program in June.
- This program aims to fund dividends, boost cash reserves, and facilitate share buybacks.
- Here’s a breakdown of the reasons behind the Bitcoin sales and the quantities involved.
Strategy, a publicly traded tech company, has invested heavily in Bitcoin since 2020. However, the firm, which is the largest corporate holder of Bitcoin, has begun to sell off parts of its reserve after years of commitment to holding its assets.
Initially, Strategy's strategy of accumulating Bitcoin set a precedent for other companies looking to integrate cryptocurrency into their financial structures. Yet, as the market faced challenges in 2026, the company shifted away from its traditional buy-and-hold approach. Recently, it sold 1,690 BTC for $108.6 million, part of a series of sales initiated earlier this year.
In May, CEO Phong Le hinted that the firm might consider selling Bitcoin if it benefited shareholders, stating, “If selling Bitcoin is more advantageous than selling equity for dividend payments, we will do it.”
Executive Chairman Michael Saylor clarified that while the company could sell Bitcoin to support dividends, the goal is to avoid being a net seller of Bitcoin. He explained, “I’ve been known for saying ‘never sell your Bitcoin.’ But to clarify: never be a net seller of Bitcoin.”
The decision to alter its strategy was also driven by a decline in the price of its preferred stock, which fell below $100 per share in May. This drop limited Strategy's ability to issue new shares, prompting a more comprehensive capital management strategy that includes Bitcoin sales to strengthen cash reserves and repurchase preferred shares.
To date, Strategy has sold 6,948 BTC for around $432.5 million since May, beginning with a sale of 32 BTC for approximately $2.5 million—the company's first sale since 2022. The funds raised have been used to meet obligations related to preferred stock dividends.
In late June, Strategy introduced its Digital Credit Capital Framework, which formalizes the conditions under which Bitcoin can be sold. Under this policy, the firm can sell up to $1.25 billion in Bitcoin to replenish its dollar reserves, which were reported at $4 billion as of August 2, and to fund dividends, interest payments, and share buybacks. The initial sale of 32 BTC was completed before this framework was established and doesn’t count against the $1.25 billion limit.
Since the implementation of this policy, the company has sold 3,588 BTC for roughly $216 million earlier this month, with these proceeds dedicated to preferred-stock dividends and cash reserves. Additionally, on August 3, Strategy disclosed the sale of 1,638 BTC for $105 million, with $52.4 million earmarked for preferred stock dividends and $52.3 million for share repurchases. The most recent sale involved 1,690 BTC sold for approximately $109 million, with proceeds allocated for STRC buybacks.
Despite these transactions, Bitcoin continues to be a fundamental part of Strategy's treasury, with over 840,000 BTC still held, valued at about $53.6 billion according to its latest SEC filing. This adjustment in policy gives Strategy the flexibility to choose between selling Bitcoin and issuing new shares when cash is needed, marking a notable shift in its management of cryptocurrency holdings.
