INSTITUTIONAL | The World’s Largest Institutional Holder of Bitcoin Sells Over 3,500 BTC

Strategy, the world’s largest institutional holder of bitcoin, has announced the sale of 3,588 bitcoins for $216 million to fund its dividends on its Digital Credit securities.

While the company still holds 843,775 bitcoins, ~4% of Bitcoin’s total supply, as of July 5 2026, the company’s $STRC stock, designed to trade near its $100 par value, is still selling at near $87, roughly 13% below its intended $100 value.

As a result, persistent discounts force Strategy into difficult choices. The company can:

• raise dividend payments to attract buyers,
• increase its cash reserves,
• offer additional investor incentives, or
• accept slower capital raising.

Each option comes with trade-offs that ultimately reduce the efficiency of buying more Bitcoin.

Thus, the company recently unveiled a new capital framework that authorizes future Bitcoin sales to

• build U.S. dollar reserves,
• fund preferred-share dividends, and
• meet interest obligations.

While Executive Chairman, Michael Saylor, has long championed a ‘never sell’ approach to Bitcoin, the new policy acknowledges that the company’s massive BTC holdings have become an active financial asset rather than simply a long-term store of value.

The new capital framework came after growing investor scrutiny over Strategy’s preferred-share funding model. As STRC traded well below its $100 target price during June 2026, the company’s ability to issue new preferred shares to finance additional Bitcoin purchases weakened, increasing pressure on alternative funding sources.

For investors, the announcement highlighted a broader evolution in Strategy’s Bitcoin treasury model.

The company’s BTC holdings are no longer viewed solely as an appreciating reserve asset used to secure financing, they are increasingly becoming a productive balance-sheet resource capable of supporting dividends, liquidity, and future capital allocation while maintaining substantial exposure to Bitcoin’s long-term upside.

Stay tuned to BitKE on Bitcoin developments globally. 

Join our WhatsApp channel here.

Follow us on X for the latest posts and updates

Join and interact with our Telegram community

__________________________________