Strategy — the company formerly known as MicroStrategy — sold 32 Bitcoin in late May, its first sale of the cryptocurrency since 2022. The roughly $2.5 million transaction was used to fund distributions on its perpetual preferred stock (STRC), which has been under pressure as Bitcoin's price slid from around $126,000 to about $58,000. The sale marks a shift for the largest corporate Bitcoin holder, which still holds 843,738 BTC, and comes as several other publicly traded firms also move to sell or pledge their crypto reserves.
Why Strategy sold
STRC traded below its $100 par value for 30 consecutive sessions starting in late April, triggering a dividend rate ratchet built into the company's Digital Credit Capital Framework. That framework raised the STRC dividend to 12% and adds another 0.5 percentage points each time the stock closes below $85 — a trigger that adds roughly $53 million in annual obligations per hit. STRC closed at $89 on June 18 and $83 on June 20, meaning the ratchet is likely active. As of July 23, the stock was about 15% below par with an effective yield above 13%.
Strategy's Bitcoin Monetization Program, announced earlier this year, allows the company to sell BTC to fund cash reserves, preferred dividends, interest payments, and buybacks of its own securities. The 32 BTC sale was the first use of that program. The company also paused its at-the-market equity program because issuing stock below par would dilute existing holders.
Other firms follow suit
Bitdeer went further, selling its entire Bitcoin stash by Feb. 20 — 943.1 BTC from reserves plus 189.8 newly mined coins — to fund a pivot into AI data centers. MARA sold 15,133 BTC in March to repurchase about $1 billion of convertible notes due 2030 and 2031. At the end of Q1, MARA held 35,303 BTC but had loaned or pledged 9,995 BTC, including 4,253 BTC against a $150 million credit line.
KULR took a different route: it pledged 300 BTC against a $15 million loan, giving the lender a first-priority security interest in the Bitcoin collateral. The company's May drawdown included a minimum required pledge.
JPMorgan flags two-way risk
JPMorgan analysts noted that Strategy's new sales policy introduces two-way risk for Bitcoin markets. While the company's ability to sell provides a backstop for its own obligations, it also means a large holder can now become a seller — something the market hadn't had to price in before. The treasury trade works best when Bitcoin rises, shares trade above net asset value, and capital markets stay open. None of those conditions hold right now.
The retail factor
Onramp Institutional estimates that retail investors hold about 83% of STRC, or roughly $8.8 billion worth. That's a lot of individual shareholders watching their dividend yield climb while the stock price sinks. Strategy's pause on equity issuance means it can't easily raise new cash to cover the growing dividend burden — hence the Bitcoin sale. Whether the company will need to sell more depends on where Bitcoin goes next and whether STRC can climb back above $85.
