Strategy sold 32 bitcoin for about $2.5 million between May 26 and May 31, earmarking the proceeds to fund cash distributions on its preferred stock, the company disclosed in an 8-K filing Monday.
The sale was executed at an average net price of $77,135 a coin and leaves Strategy holding 843,706 BTC at a blended cost basis of $75,699, according to the filing. A footnote to the BTC update stated that "proceeds from the bitcoin sales are expected to be used to fund distributions on preferred stock."
This is the first BTC disposal Strategy has reported since December 22, 2022, when its MacroStrategy subsidiary sold 704 BTC for roughly $11.8 million at an average $16,776 a coin and then repurchased 810 BTC two days later. It was a tax-loss harvest, not an operating-need disposal.
The June 2026 sale carries a different rationale: a recurring cash obligation on the preferred-equity stack that Michael Saylor has built around the bitcoin treasury over the past year.
The Dividend Math the Treasury Is Now Servicing
On the same filing, Strategy's board declared June 30 cash dividends across all five preferred series — STRF, STRC, STRE, STRK, and STRD — and held the variable rate on its STRC "Stretch" preferred stock unchanged at 11.50% per annum for the fourth consecutive month.
STRC pays $0.958333333 per $100 share each month; the rate is reset monthly to keep the stock trading near its $100 par, which is what keeps Strategy's at-the-market share-issuance program open as the funnel for new bitcoin buys.
The other four series — STRF at a 10% quarterly $2.50, STRE at €2.50, STRK at 8% quarterly $2.00, STRD at 10% quarterly $2.50 — also pay on the June 30 record.
The filing disclosed a USD Reserve balance of $900 million as of May 31, a management-designated liquidity pool set up in December to support exactly these preferred distributions and the interest on outstanding debt.
A $2.5 Million Sale
The 32 BTC disposed represents about 0.004% of Strategy's stack, and the proceeds are roughly a third of one month's STRC distribution at current outstanding levels. But Saylor told Bloomberg in January 2022 that Strategy was "never" a seller. "We're not sellers. We're only acquiring and holding BTC. That's our strategy." He has more recently clarified the slogan to "never be a net seller."
The 8-K confirms the slogan has now been tested. Strategy paired the disclosure with last week's $1.5 billion paydown of 2029 convertible notes drawn from cash reserves, the second leg of a treasury pivot the company has been signaling for two weeks. The pattern: equity issuance under STRC is still the principal funding channel, but cash reserves and now bitcoin itself are being tapped to service the preferred stack when the ATM funnel slows.
Where the Sale Could Get Bigger
Bitcoin was trading around $73,400 on Monday, below the $77,135 net average Strategy realized on the late-May tape and roughly $2,300 below the company's blended cost basis. Spot bitcoin ETFs have just logged ten consecutive sessions of net outflows totaling $2.97 billion. If STRC falls further from par, the ATM channel narrows, and the only fixed input on the dividend side is the preferred coupon itself.
Strategy did not say in the filing how much of the June 30 distribution stack the $2.5 million is meant to cover, nor whether further sales are scheduled. The next signal will be the next monthly 8-K and whether the 32-coin figure stays a footnote or becomes a pattern.