Strategy Sells $216M in Bitcoin, Shares Dip 2%

Strategy, the company formerly known as MicroStrategy, sold 3,588 Bitcoin for about $216 million last week, the company disclosed in an SEC filing. The sales, executed between June 29 and July 5, reduced Strategy’s holdings to 843,775 BTC and coincided with a 2% drop in the company’s shares on Monday.

The filing breaks the sales into two tranches. From June 29 to June 30, Strategy sold 1,363 Bitcoin for about $80.8 million at an average price of $59,256 per coin. From July 1 to July 5, it sold 2,225 Bitcoin for about $135.2 million at an average price of $60,773 per coin. The company said proceeds were used to fund distributions on newly issued preferred stock and to replenish part of its U.S. dollar reserve, which stood at $2.6 billion as of July 5.

The sales were carried out under a new Digital Credit Capital Framework introduced June 29. The framework allows the U.S. dollar reserve to be used only to pay preferred stock dividends and interest and requires the reserve to cover at least 12 months of those obligations. Strategy also launched a BTC Monetization Program that permits up to $1.3 billion of Bitcoin sales to support the reserve, fund preferred distributions and interest, or repurchase digital credit securities and common stock. Separately, the company authorized $1 billion repurchase programs for its digital credit securities and Class A common stock. The filing notes no additional capacity from the Monetization Program had been used as of July 5 beyond the recent sales.

In a second-quarter update, Strategy reported an $8.3 billion unrealized loss on digital assets and a $0.9 million realized loss. The company said the market value of its Bitcoin holdings fell below their purchase cost at quarter end, prompting it to record a valuation allowance to offset the related deferred tax benefit. Strategy reported an average purchase price of $74,476 per Bitcoin, a total acquisition cost of roughly $63.7 billion including fees and expenses, and a current valuation of about $52.3 billion for its holdings.

Strategy’s holdings represent more than 4% of Bitcoin’s 21 million maximum supply. Bitcoin’s price fell about 2% after the filing. Strategy’s shares declined 2% on Monday after closing 7.9% higher on Thursday. Shares of other crypto-linked companies moved in the session as well.

Responses from market analysts were mixed. JPMorgan warned the policy could introduce an “avoidable two-way risk” because the company might act as both buyer and seller of Bitcoin. Bernstein said forced sales were unlikely given Strategy’s liquidity and reserve coverage, and noted the company had accumulated roughly 175,000 Bitcoin for about $14 billion so far in 2026 while maintaining a $150,000 year-end Bitcoin price target. Benchmark reiterated a Buy rating with a $570 price target. TD Cowen reduced its price target to $260 from $400, citing a weaker Bitcoin outlook.

Executive Chairman Michael Saylor wrote on social media that 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.”