Strategy just sold $216 million in Bitcoin to pay dividends and the model is showing its limits

fling dropped this morning and they sold 3,588 btc for $216 million,purpose being funding dividends on strategy's digital credit securities ,which are five series of perpetual preferred stock with combined annual obligations of $750-800 million.

In may the 32 BTC sale was framed as inoculation meaning to sell a symbolic amount to prove the mechanism works, maintain capital market confidence and keep issuing equity and debt to buy more btc. The logic held when MSTR traded at a premium to its btc NAV. Investors paid extra for saylor's conviction and the leveraged exposure.

MSTR now trades below the value of its btc holdings and the premium that made the model work has flipped to a discount so raising fresh equity at a disc to NAV is dilutive and raising fresh debt when btc is below avg cost basis of $75,699 is expensive which leaves selling btc to service the preferred dividends as the path of least resistance and exactly what this morning's filing shows.

The preferred dividend structure doesnt care about bitcoin's price trajectory or saylor's $21 million long-term target,it pays quarterly regardless and at $750-800 million annually thats roughly $187-200M per quarter in obligations so today's 216 million sale covered approximately one quarter's worth.

This will become a recurring event unless btc recovers significantly above the avg cost basis or strategy finds cheaper financing.

Is the preferred dividend structure fixable without a significant btc recovery or is this now a quarterly liquidation story?