Strategy Inc. (MSTR) sold 32 bitcoins at an average price of $77,135 during the period from May 26 to 31, and the proceeds were used to pay STRC preferred dividends. Ledn CEO and co-founder Adam Reeds said the sale touches the core issue for every bitcoin reserve company: “When cash is needed, should you sell the asset you most want to hold, or use it as collateral to borrow against?”
Strategy SEC filing disclosure: sale details and cash reserve data
The specific figures disclosed in Strategy’s SEC filing dated June 1, 2026 are:
Bitcoin sold: 32 BTC, average price of $77,135, totaling about $2.5 million
MSTR stock sold: 801,994 shares, net proceeds of $128.3 million
Cash reserves: $900 million (to pay preferred dividends and debt interest)
STRC annualized dividend rate: 11.50%
STRC dividend per share in June: $0.958333333
STRC remaining issuance capacity: $17.51 billion
Ledn CEO assessment: structural change in bitcoin collateralized lending after 2022
In commenting on Strategy’s selling behavior, Adam Reeds explained that before this, selling bitcoin was the only viable option for many corporate treasurers because institutional-grade bitcoin collateralized lending tools did not exist. He noted that after the collapse of crypto lending institutions in 2022, corporate treasuries were unwilling to hand over bitcoin to lending institutions with rehypothecation risk, but this situation has changed in recent years.
Reeds said that current institutional-grade bitcoin collateralized lending has four conditions: collateral is held in segregated addresses; no rehypothecation; reserve proof; and a credit-rating structure behind it. He said, “Institutional bitcoin-backed credit now has the protections that these borrowers have needed all along.”
STRC capital structure and investor focus
STRC’s preferred stock design introduces an ongoing cash distribution obligation for Strategy, directly tied to the company’s bitcoin holdings. The core question investors are tracking is how Strategy’s capital operations will evolve amid the interplay of dividends, equity dilution, reserves, and bitcoin holdings. With $17.51 billion remaining issuance capacity for STRC, the company can continue to issue preferred shares, further expanding the scale of its dividend obligations.
FAQ
What is the direct reason for Strategy’s sale of 32 bitcoins?
According to Strategy’s SEC filing dated June 1, 2026, the proceeds from the sale were used to pay STRC preferred dividends. STRC has an 11.50% annualized dividend rate, and in June 2026 it will distribute a cash dividend of $0.958333333 per share.
What exactly does “no rehypothecation” mentioned by Ledn mean in bitcoin lending?
Rehypothecation means the lending institution uses other financing activities for the collateral deposited by the customer. Some crypto lending institutions collapsed in 2022 for this reason. “No rehypothecation” means the bitcoin collateral is held in segregated addresses for the customer, and the lending institution cannot move or use it—one of the core protection conditions of institutional-grade lending mentioned by Ledn.
What does the remaining $17.51 billion issuance capacity for STRC mean for Strategy?
Remaining issuance capacity means Strategy can continue to issue STRC preferred shares. For each batch of preferred shares issued, the company’s ongoing dividend obligations increase accordingly. Investors use this figure to assess the potential scale of cash needs Strategy could face in the future, as well as the stability of its bitcoin holdings under liquidity stress.
