Strategy sold 3,588 BTC for about $216 million last week at an average price near $60,000, cutting its holdings to 843,775 BTC, according to a Monday SEC filing.

Proceeds will fund preferred stock dividends and rebuild the company's USD reserve, which stood at $2.55 billion. This follows a much smaller 32-BTC sale a month earlier, marking a sharp acceleration.

The shift matters because it exposes the limits of Strategy's model: with its stock premium over bitcoin holdings (mNAV) now below 1, issuing new shares costs more than it raises, pushing the company toward selling actual coins to cover fixed dividend obligations.

A key risk is a reflexive loop, weaker mNAV forcing more BTC sales, adding pressure to bitcoin's price. Watch whether Strategy taps its disclosed $1.25 billion sale capacity next.