MicroStrategy finally couldn't hold on and started selling coins in large quantities.

On July 6, Strategy announced the sale of 3,588 Bitcoin, cashing out approximately $216 million at an average price of about $60.2k, to pay dividends on its preferred stock (STRC). After the sale, the remaining holdings are 843,775 Bitcoin, still making it the largest corporate Bitcoin holder globally, while retaining $2.55 billion in cash reserves.

This is MicroStrategy's largest net sale since December 2022. Previously, from May 26 to 31, it sold a small amount of 32 Bitcoin, which the company called a "test process" and "market desensitization." This sale is 112 times larger than the previous one, far exceeding market expectations for small-scale tests.

At the time of the sale, Bitcoin prices were in a bear market range, and the company's average purchase cost was about $75.5k, resulting in a book loss from this sale. The company also disclosed that its cash reserves can cover interest expenses for more than 17 months, yet it still chose to use Bitcoin rather than relying solely on cash or new financing.

Market trust in the commitment to "never reduce holdings" has clearly weakened.

In August 2020, Michael Saylor led MicroStrategy to incorporate Bitcoin as a core reserve asset, continuously increasing holdings through stock issuances and convertible bonds, building a "leveraged Bitcoin proxy" model. The company has long loudly proclaimed it would "never sell," and Saylor himself repeatedly reinforced this image with statements like "I would sell a kidney to hold Bitcoin," thereby supporting MSTR's long-term valuation premium above net asset value and attracting a large number of followers.

During the bear market at the end of 2022, MicroStrategy reduced its holdings by 704 Bitcoin for tax-loss harvesting, and two days later bought back 810 Bitcoin at a lower price, achieving a net increase. In the following years, the company strictly adhered to a strategy of only buying and not selling, gradually accumulating holdings from tens of thousands to over 840k Bitcoin, accounting for about 4% of the global total supply of Bitcoin.

Starting in 2025, the company launched high-yield STRc preferred stock with an annual dividend yield that once exceeded 11%, significantly increasing the monthly dividend burden. Entering 2026, as Bitcoin prices corrected and the mNAV (market cap to Bitcoin holdings ratio) repeatedly fell below 1x, management gradually signaled during earnings conference calls that it might "sell Bitcoin in a controlled manner" to address liquidity needs.

At the end of June, the board formally approved the "Digital Credit Capital Framework," authorizing the sale of up to $1.25 billion worth of Bitcoin under specific conditions, with proceeds to be used for replenishing reserves, paying dividends, interest, and share buybacks.

Jiang Zhuo'er, founder of Laitbit Mining Pool, bluntly stated that this move marks MSTR's "first large-scale coin dump" — choosing to actively reduce holdings despite having $2.55 billion in cash reserves means that the myth of "never selling Bitcoin" has been broken. He believes that the company could have continued to raise funds by issuing additional common stock, maintaining market faith (the symbolic meaning of Bitcoin per share is more important than sheer quantity) while avoiding dilution of Bitcoin holdings per share; now choosing to sell is more likely intended to leave room for swing trading in a bear market, and it could even become one of the main selling forces in a bull market stage. Jiang also pointed out that even if Bitcoin falls to $30k, the company's leverage ratio would only rise to about 10%, with risk within a controllable range, and it is not a forced liquidation.

MicroStrategy CEO Phong Le and Saylor explained that this sale aims to fulfill payment obligations to preferred stock holders and is part of dynamic balance sheet management, with the purpose of "letting the market gradually adapt to possible adjustment operations" while verifying the feasibility of internal processes. The framework is not a mandatory sell-off but rather gives management an optional tool to use when they judge that selling is better than other financing methods. The company still positions itself as a long-term Bitcoin holder, but no longer adheres to the "absolute no-sell" stance.

Overall, in the short term, the narrative rift is difficult to quickly heal, and MSTR's stock price and Bitcoin's trend will still face significant volatility. The company may continue small-scale, phased sales to match dividend needs when cash reserves are sufficient, or may buy back at low prices depending on market conditions, but the decline in Bitcoin per share is a fait accompli. If Bitcoin prices weaken further, selling pressure may increase.

In the medium term, MSTR is transitioning from a "pure HODL faith benchmark" to a more active capital operation entity, and the logical foundation for its valuation premium will be re-examined. If net reductions continue without equivalent repurchases, its attractiveness as a leveraged Bitcoin investment tool will inevitably diminish, and the overall financing environment of the DAT sector may also be affected. Jiang Zhuo'er and others judge that this may indicate that the company will become one of the largest sellers in the next bull market.

In the long term, the general trend of Bitcoin as an institutional reserve asset will not reverse, but MSTR's strategy has evolved from "always buying" to "conditional management." If Bitcoin enters a bull market again, the company may still aggressively increase holdings; if the bear market continues, liquidity management will take higher priority. In any case, the absolute narrative of "never selling Bitcoin" is gone forever, and the market will view the capital operations of such Bitcoin treasury companies from a more pragmatic perspective in the future.