Strategy Sells Millions in Bitcoin to Fund Preferred Dividends
Strategy, formerly known as Microstrategy, has been managing its Bitcoin holdings as a liquid asset. In recent transactions, the company used $216 million generated from selling 3,588 BTC to fund preferred dividends. This represents a significant shift in strategy for the company, which previously aimed to accumulate more Bitcoin rather than sell it.
The sale of this large amount of Bitcoin consumed nearly 17% of its $1.25 billion sale authorization within just a week. The company has been using these sales to manage its $1.5 billion annual dividend obligation on preferred stock. This means that common shareholders receive payments after preferred shareholders, reducing their direct exposure to the asset.
The company's management views Bitcoin as a flexible financial tool rather than an accumulation strategy. Strategy recently marked its 100th Bitcoin purchase since January 2026 and has added 8,178 BTC in recent days, bringing its total holdings to 649,870 BTC. The company's $1.44 billion cash reserve covers 12 months of preferred dividends and debt interest.
The math behind Strategy's capital stack is complex, with a massive debt and equity stack consisting of $15.5 billion in outstanding preferred stock and $6.2 billion in convertible bond debt. The company holds 844,000 Bitcoin worth $51.1 billion at an average price of $60,500 per coin.