Strategy’s $135m Bitcoin Sale Bypasses Its Own $1.25bn Disclosure Cap

Strategy Inc, the Bitcoin treasury company formerly known as MicroStrategy, sold $135 million worth of Bitcoin last week without drawing on the $1.25 billion selling programme it authorised just days earlier, according to Matthew Sigel, Head of Digital Assets Research at VanEck. The distinction, which Sigel set out on 7 July, rests on an accounting classification: the sale was booked as a dividend payment rather than a reserve-building transaction, leaving the newly created programme technically untouched.

The clarification matters because it suggests Strategy’s total capacity to sell Bitcoin is materially larger than the headline $1.25 billion figure implies. It also marks a departure from the company’s long-standing “never sell” posture, a stance that has defined its public identity since it began accumulating Bitcoin under founder Michael Saylor.

A framework built for controlled disposals

On 29 June, Strategy unveiled what it terms the Digital Credit Capital Framework, marking the first time in the company’s history that Bitcoin sales have been formally authorised by its board. At the centre of the framework sits the BTC Monetization Program, which caps reserve-related Bitcoin disposals at $1.25 billion.

Sigel noted that the framework permits selling avenues beyond reserve building, and the $135 million transaction is a clear illustration. By tagging the sale as a dividend payment rather than a reserve action, Strategy has demonstrated that its effective sell capacity extends beyond the headline cap disclosed to the market. As of early July, the company held 847,363 BTC, meaning the $1.25 billion ceiling represents only a small fraction of its total holdings.

Preferred dividend obligations drive the sale

The classification is closely tied to Strategy’s preferred share structure. The company raised its STRC preferred dividend rate by 50 basis points to 12% in July, a commitment that requires cash rather than promises. Selling Bitcoin to fund that obligation is a pragmatic step, even though it sits uneasily alongside the accumulation narrative that has underpinned the stock for half a decade.

By routing the $135 million sale through the dividend channel, Strategy preserves the full $1.25 billion of unused capacity under the monetisation programme for future reserve needs, while still meeting its cash commitments to preferred shareholders. The manoeuvre highlights how corporate disclosure choices around Bitcoin sales can materially affect how the market interprets a company’s treasury discipline.

Implications for market oversight

For investors, the arrangement offers a degree of reassurance on liquidity management. Strategy has financed its Bitcoin accumulation through a mix of equity issuance, convertible debt and preferred stock, and a board-approved mechanism for converting Bitcoin into cash reduces the risk of a forced sale during periods of market stress.

For the wider Bitcoin market, the scale of Strategy’s holdings means any structured selling creates a potential overhang that regulators and analysts are likely to watch closely. The $1.25 billion cap, combined with the company’s evident willingness to classify certain sales outside that programme, indicates that disclosed selling limits may understate the true scope of a large holder’s disposal capacity, a point that could sharpen scrutiny of how digital asset treasury companies report Bitcoin transactions to shareholders.

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