Technique bought 3,588 bitcoin for $216 million to fund dividends on its most well-liked securities, the corporate disclosed in a Type 8-Okay on July 6, 2026. The sale marks the most important bitcoin disposal within the firm’s historical past and its most direct admission that its dividend obligations now form its treasury.
Chairman Michael Saylor posted concerning the transaction on social media. As of July 5, the corporate held 843,775 bitcoin in its reserves and $2.55 billion in money. Saylor mentioned the proceeds lined second-quarter dividends on 4 most well-liked devices and the total June fee on a fifth.
The disclosed sale funded quarterly dividends on STRF, STRE, STRK, and STRD. It additionally lined the month-to-month dividend on STRC. Collectively these securities kind the core of what Strategy calls its Digital Credit score enterprise.
Every instrument carries a definite payout construction. STRF, the senior tier, pays a hard and fast 10% annual dividend on a $100 acknowledged quantity. STRE pays 10% a 12 months on a €100 acknowledged quantity, denominated in euros.
STRK pays 8% and converts to widespread inventory if shares attain $1,000. STRD pays 10% however is just not cumulative, giving the board room to skip a fee.
STRC sits in the midst of the stack and pays a variable fee close to 12%, reset to maintain the safety buying and selling near its $100 par. The board not too long ago shifted STRC to semi-monthly funds.
None of the popular securities is backed by the corporate’s bitcoin. Every holds solely a declare on residual property.
Why Technique is promoting
Technique is the most important company holder of bitcoin. The corporate has constructed its treasury via repeated inventory and debt choices. Its bitcoin sits at a price foundation close to $63.9 billion, or roughly $75,700 a coin.
That mannequin created a rising money invoice. The popular securities pay dividends in money, not bitcoin. Technique’s software program enterprise doesn’t generate sufficient to cowl them.
Grayscale’s head of analysis, Zach Pandl, estimated the annual dividend load at $1.5 billion. When money reserves run quick, the corporate should elevate extra capital or promote cash.
For years Saylor pledged to by no means promote. That stance resulted in late Could 2026. Technique sold 32 bitcoin for about $2.5 million, its first disposal since 2022, to fund most well-liked dividends.
The transfer broke the pledge and drew huge consideration. Saylor framed it as a sign of dedication to most well-liked holders somewhat than a retreat from bitcoin. “Our goal is to make STRC the best credit instrument in the world,” he said on the time.
The July sale dwarfs that first step. At 3,588 cash and $216 million, it’s roughly 100 instances bigger.
Shopping for and promoting without delay
Technique continues to build up even because it sells. After the Could sale, the corporate bought 1,550 bitcoin for $101.3 million, practically 50 instances the scale of the disposal. It made a $2 billion buy in Could and a $2.54 billion buy in April.
The sample exhibits a agency that funds dividends from its stack whereas including to it via contemporary capital raises.
That strategy relies on market entry. Technique can problem new most well-liked shares and customary inventory to boost money. When these markets cooperate, the corporate avoids massive gross sales. After they tighten, bitcoin turns into the supply of funds.
The July disposal suggests the second situation held through the quarter.
Final night time, Saylor posted “Bitcoin is Digital Energy” on X, accompanied by Technique’s orange-dot Bitcoin acquisition chart, prompting expectations that one other SEC submitting disclosing a brand new Bitcoin buy is imminent. Merchants have come to view these weekend posts as a recurring sign forward of Technique’s BTC accumulation bulletins. This time, the announcement was a couple of bitcoin sale.
On the time of writing, Technique shares are down 2% in premarket and bitcoin has dipped under $62,000.
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Supply: bitcoinmagazine.com
