MSTR stock drops over 2% after 3,588 Bitcoin sold to fund dividends

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Strategy slides 2.2% to $98.55 today

Highlights

Strategy sold 3,588 Bitcoin for $216 million to fund dividend payments, increasing dollar reserves and reducing crypto exposure.
The company posted an $8.32 billion quarterly loss on digital assets, raising STRC preferred dividend yield to 12% and authorizing new Bitcoin sales for liquidity and shareholder returns.
Technical outlook is short-term bearish with prevailing seller dominance and a projected 2–3 day trading range of $90.24 to $106.86.

Liquidity drive and asset losses shape shift toward capital returns

Strategy sold 3,588 Bitcoin for approximately $216 million between June 29 and July 5, 2026, in order to fund dividend payments on its preferred securities, a move that increased its U.S. dollar reserves and reduced exposure to digital assets, according to Quiverquant. The company also reported an $8.32 billion loss on digital asset holdings for the quarter ended June 30, 2026, reflecting substantial volatility and realized losses, as reported by Blockonomi. In July 2026, Strategy raised its annual dividend yield on STRC preferred securities to 12% and approved a new Digital Credit Capital Framework allowing selective sales of up to $1.25 billion worth of Bitcoin to further support liquidity, share buybacks, and dividends. These actions signal a focus on liquidity management and capital returns amid challenging asset performance.

Conflicting buy and oversold signals as mixed momentum clouds trend

The technical setup shows MSTR/USD trading below the 20-day moving average but above the 50-day moving average on the working timeframe, with the price remaining well under the 200-day moving average on the daily chart. The Ichimoku Kijun sits at $98.92 and acts as immediate resistance, while momentum readings present a mixed outlook: the Moving Average Convergence Divergence (MACD) indicates strong buy momentum and the Average Directional Index (ADX) is neutral, whereas the Relative Strength Index (RSI) also signals a buy, but the Commodity Channel Index (CCI) and Bull/Bear Power both register oversold market conditions and bearish dominance. Stochastic RSI confirms that the stock is in oversold territory, and the Awesome Oscillator remains neutral, highlighting ongoing conflict between momentum-based signals and oversold oscillators.

Consolidation favored as downside risks outweigh short-term upside

Over the next two to three trading days, MSTR/USD is expected to fluctuate within a range of $90.24 to $106.86, a typical volatility band relative to current levels. Probability models assign a 39% likelihood to an upward move, with the downside scenario more probable in the near term. The baseline case anticipates price consolidation within this range; a move above $98.92 would open the path to a bullish scenario, whereas a sustained drop below the lower support may trigger additional selling pressure.

Viktoras Karapetjanc, analyst at Traders Union, sees Strategy’s latest moves as a decisive push to stabilize liquidity and reassure investors despite digital asset volatility. He notes that the selective Bitcoin sales and a higher preferred dividend show the company is prioritizing flexible capital management. The technical outlook remains choppy, with mixed momentum signals and a bias toward further downside. Karapetjanc believes constructive sentiment could return if MSTR/USD holds above key support levels and positive news flow persists. "With active balance sheet management and a willingness to reward shareholders, I expect the stock to find buyers on dips and maintain a resilient tone in the coming sessions."

Previously it was reported that persistent downside momentum and weak financial results were weighing heavily on Strategy’s share price, with bearish technical signals dominating market sentiment. The recent combination of continued asset sales, elevated volatility, and conflicting momentum indicators suggests traders should monitor for a decisive move above resistance or, alternatively, prepare for renewed selling if support fails.

Source of Data: MSTR Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.