Strategy sells Bitcoin for the first time since 2022 to fund dividend payments

The company that turned “buy Bitcoin and never sell” into a corporate identity just sold some Bitcoin. Strategy, the firm formerly known as MicroStrategy, disposed of 32 BTC between May 26 and May 31, generating roughly $2.5 million at an average price of $77,135 per coin.

It’s the company’s first Bitcoin sale since December 2022.

What happened and why it matters

The proceeds from the sale went toward funding distributions on Strategy’s STRC perpetual preferred shares. In plain English: the company needed cash to pay dividends, and it tapped its Bitcoin pile to get it.

32 Bitcoin out of 843,706 is roughly 0.0038% of the company’s holdings. MSTR shares dropped about 6% after the June 1 disclosure.

Strategy’s board has authorized a framework allowing up to $1.25 billion in Bitcoin sales to build a reserve specifically dedicated to covering annual dividend and interest payments.

As of the end of May, the company’s Bitcoin treasury sat at 843,706 BTC, purchased at an average cost basis of $75,699 per coin. At current prices, that stack is worth north of $60 billion, making it by far the largest corporate Bitcoin holding on the planet.

The dividend problem nobody talks about

Strategy has been aggressively issuing preferred shares and convertible notes to fund its Bitcoin accumulation strategy. These instruments come with ongoing obligations, specifically dividend payments and interest that need to be serviced in actual dollars, not in Bitcoin.

During the Q1 2026 earnings call on May 5, Strategy executives openly discussed the possibility of selling Bitcoin. They framed it as a way to enhance Bitcoin-per-share metrics while simultaneously supporting dividend payments.

Still buying, though

Strategy hasn’t stopped accumulating. In the weeks following the 32 BTC sale, the company purchased 1,550 BTC. So the net position actually grew during the same period.

The $1.25 billion authorization is essentially a war chest for predictability. Rather than scrambling to find cash every quarter when dividend payments come due, Strategy is creating a dedicated reserve funded by periodic Bitcoin sales.

What this means for investors and the broader market

The risk scenario worth watching is a prolonged Bitcoin price decline combined with rising dividend obligations. At $77,135 per BTC, the math works fine. Strategy’s cost basis is $75,699, so they’re selling at a modest profit. But if Bitcoin were to drop significantly below that cost basis, the company would face the unpleasant choice of selling at a loss to meet obligations or finding alternative funding sources under pressure.

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