Strategy sells 3,588 bitcoin at a loss to fund dividends

Strategy, widely regarded as a leading digital asset treasury company, has finally hit the sell button. The company sold bitcoin it had purchased at higher prices for less than it paid, raising cash to fund preferred stock dividends — a move that has intensified debate over its bitcoin treasury strategy.

Michael Saylor, Strategy's board chairman, announced Monday on X, formerly Twitter, that "the company sold 3,588 bitcoin" and "invested $216 million to pay dividends on Digital Credit securities."

According to documents Strategy filed with the US Securities and Exchange Commission (SEC), the company sold 1,363 bitcoin for $80.8 million between June 29 and June 30. The average selling price was $59,256 per coin.

Strategy then sold an additional 2,225 bitcoin between July 1 and July 5, raising $135.2 million. The average selling price came to $60,773 per coin. Combined, the two tranches totaled 3,588 bitcoin sold for $216 million.

Notably, Strategy sold the bitcoin below its average purchase price. As of July 5, the company's average acquisition cost stood at $75,476 per coin — meaning the recent sales came in roughly 20 percent below that figure.

Peter Schiff, a financial commentator and prominent bitcoin skeptic, said the average selling price over the two-week period was $60,196.76. "They buy at the top and sell at the bottom," he said.

The sales reduced Strategy's bitcoin holdings from 847,363 coins as of June 22 to 843,775 coins as of Tuesday. The company's cumulative bitcoin acquisition cost now stands at $63.69 billion.

Proceeds from the sales went toward preferred stock dividend payments and replenishing the company's dollar reserve. As of Sunday, Strategy's dollar reserve balance stood at $2.55 billion. The company maintains a separate dollar reserve to cover preferred stock dividends and interest payments on outstanding debt.

The sales have drawn significant market attention given that Saylor had repeatedly emphasized his commitment to holding bitcoin for the long term. He had previously stated his opposition to selling, posting on X that he would "never sell bitcoin."

Losses tied to the decline in bitcoin prices have also mounted. Strategy said it recorded a loss of $8.32 billion on digital assets in the second quarter of this year. Of that, $8.31 billion was unrealized valuation losses, with realized losses amounting to approximately $900,000.

Meanwhile, according to CoinMarketCap, bitcoin was trading at $64,129 as of 9:18 a.m. Tuesday — up 10.7 percent from 24 hours earlier.