Bitcoin dropped, but then reversed higher, after Strategy said it sold some of its cryptocurrency holdings to pay dividends

Strategy sold more than 3,000 bitcoins to raise cash to pay dividends on its preferred stock - something Executive Chair Michael Saylor had previously said it didn't need to do.

Bitcoin prices took an early dive on Monday, before bouncing back into the green, after Strategy disclosed the sale of more than $200 million worth of the cryptocurrency so it could make some payments to shareholders.

The company (MSTR) also disclosed in an 8-K filing with the U.S. Securities and Exchange Commission that it recorded an $8.32 billion loss on its cryptocurrency holdings during the second quarter, including $8.31 billion in unrealized losses and $900 million in realized losses.

The disclosure comes a week after Strategy announced a new bitcoin "monetization" program that the company said it could use to pay dividends on its preferred stock, to buy back common stock and/or to build up its cash reserves. The moves represent a shift from the "HODL" philosophy - referring to the crypto trading strategy to "hold on for deal life" - that had been touted for years by Strategy Executive Chair Michael Saylor.

Saylor had said earlier this year that the company didn't have to sell bitcoin (BTCUSD) because it had enough cash to cover dividend and debt payments for the next two-and-a-half years. But that's exactly why it sold.

On Monday, Strategy said it sold a total of 3,588 bitcoins over the past week at a weighted-average price of $60,197 per bitcoin to raise $216 million. Of that total, 2,225 bitcoins were sold so far in July to raise $135.2 million.

The company said it used the money raised to fund payment of distributions on preferred stock, and to replenish the money used from its U.S. dollar reserves for the distributions. Strategy had previously been issuing preferred stock and selling common stock to raise money to buy and hold bitcoin.

Bitcoin edged up 0.4% in recent afternoon trading Monday, but had been down as much as 3.6% after the disclosure of the sale was made, according to FactSet data.

Strategy's stock was up 2.2% Monday, but had been down as much as 6.1% at its intraday low. It has now surged 18.4% amid a three-day win streak, and has rallied 25.1% since it closed on June 26 at its lowest price - $82.31 a share - since Feb. 26, 2024.

The company's unrealized losses on bitcoin come as the average purchase price of the 843,775 bitcoins it owned as of July 5 was $75,476, while the crypto had ended the second quarter at $58,710 after tumbling 20% during the quarter, according to Dow Jones Market Data.

The realized losses followed the company's sale of 32 bitcoins during the last week of May at an average price of $77,135, and the sale of 1,363 bitcoins at an average price of $59,256 over the last two days of June.

Strategy also said Monday that it didn't sell any preferred or common shares last week, but also did not buy back any shares under its current repurchase program.

Despite the recent bounce, the company's stock has still tumbled 32.3% in 2026 and bitcoin prices have shed 27.1%, while the S&P 500 index SPX has advanced 10.2%.

-Tomi Kilgore

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(END) Dow Jones Newswires

July 06, 2026 13:43 ET (17:43 GMT)

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