Strategy (MSTR), the world’s largest publicly traded corporate holder of bitcoin, disclosed in a Monday 8-K filing that it sold 32 bitcoin for $2.5 million. The transactions, executed between May 26 and May 31 at an average price of $77,135 per coin, represent the first time the firm has offloaded any of its holdings since selling 704 bitcoin at approximately $18,000 each during the 2022 bear market.
While the 32-bitcoin sale is a minor fraction of the company’s total stack of over 840,000 coins, the filing confirms the proceeds are earmarked to fund cash distributions for STRC, the company’s perpetual preferred stock. This pivot toward using bitcoin sales to support dividend obligations follows weeks of market speculation regarding the firm's financing strategy.
Strategy continues to position STRC as a short-duration, high-yield savings alternative, maintaining its dividend rate at 11.5% for the fourth consecutive month. This rate stability was made possible after the stock’s monthly volume-weighted average price (VWAP) reached $99.62, keeping the shares near their $100 par value.
Maintaining the $100 par value is a central objective of the product's design, as it allows Strategy to efficiently issue additional shares through its at-the-market (ATM) program. These capital-raising efforts are vital for the company to manage debt obligations, such as its recently paid-down 2029 convertible notes, and to continue its bitcoin acquisition strategy.
STRC has undergone seven dividend increases since its introduction in July 2025, when it launched with a 9% rate. Although the stock has not traded at its $100 par value since May 14—having dipped as low as $97.11 last Thursday before recovering to roughly $99.10—the company anticipates price stabilization ahead of the June 15 ex-dividend date.
Market reaction to the filing was swift, with bitcoin prices retreating below $72,000, a decline of nearly 3% over a 24-hour period. MSTR shares also saw downward pressure, falling 5.15% in premarket trading on Monday.
Executive Chairman Michael Saylor, who previously teased the possibility of such sales, addressed the market via social media on Sunday with the brief post: "Working Better." Investors are now evaluating whether the company will continue to utilize its bitcoin reserves to support the STRC dividend or if it will rely primarily on its ATM program to satisfy corporate financing needs.
