The global cryptocurrency market experienced a sharp sell-off this week after corporate treasury firm Strategy executed its first Bitcoin sale since 2022. The decision to offload 32 BTC to cover high-yield dividend obligations caused Strategy’s $10 billion STRC preferred stock to temporarily drop 5.3% below its $100 par value. In response to the market panic, Jiang Zhuoer, CEO of the major Chinese mining pool BTC.TOP, issued a public defense of the firm’s balance sheet, stating that Strategy maintains a highly manageable 5% debt-to-asset ratio.
According to Zhuoer, the fears of a forced liquidation cascade are unfounded. Even if the price of Bitcoin plummeted to $30,000, Strategy’s debt ratio would only increase to 10%. He argued that selling small amounts of older, low-cost Bitcoin to fund its 11.5% STRC preferred stock dividends is a logical accounting move that reassures investors of consistent payouts. The reassurance arrives just days after STRC shares dipped following the unexpected corporate sale.
Strategy Chairman Michael Saylor has actively adjusted the firm’s communication regarding its treasury holdings. Saylor recently confirmed the company will selectively sell Bitcoin when financially advantageous to cover obligations and inoculate the market against broader volatility, ending the firm’s strict accumulation-only approach.
Despite the break in policy, Strategy remains a net buyer of the digital asset. The firm recently completed the purchase of 1,550 BTC for $101.3 million. Concurrently, shareholders approved a corporate amendment shifting STRC dividend payouts from a monthly to a semi-monthly schedule, which goes into effect in late June 2026.
How Strategy’s Dividend Pivot Alters Corporate Treasury Models
The decision to utilize Bitcoin holdings to fund fixed corporate obligations marks a structural change in how public companies manage digital asset treasuries. Previously, firms treated Bitcoin exclusively as a long-term reserve asset, completely isolated from operational cash flow. By allocating small percentages of a highly appreciated Bitcoin treasury to satisfy 11.5% preferred stock yields, Strategy is testing a hybrid capital allocation model.
If the semi-monthly dividend schedule succeeds without requiring substantial liquidations, other public companies holding digital assets may adopt similar frameworks. This structure allows firms to fund shareholder returns directly from treasury asset appreciation without taking on traditional debt obligations or diluting common equity.