Strategy sold 1,638 Bitcoin to fund dividend payments and repurchases of its preferred stock STRC, its main mechanism for raising funds to accumulate Bitcoin. STRC trading below par limits Strategy’s ability to raise funds through STRC sales and could force the company to further increase its nominal dividend rate to attract buyers. On June 24, CryptoQuant CEO Ki Young Ju recommended that Strategy pause Bitcoin purchases, rebuild cash reserves, and adopt a systematic framework for purchase timing, after the company’s dividend coverage ratio fell from seven years to fourteen months. In its June 29 8-K filing, Strategy unveiled a capital framework allowing Bitcoin sales to fund dividends, increased the annual dividend rate on STRC to 12 %, and disclosed that its US dollar reserve had grown to $2.55 billion.
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