Strategy disclosed in its 8-K filing on Monday that it sold 32 bitcoins between May 26 and 31, raising approximately $2.5 million. This is the company's first public disclosure of a bitcoin sale, and the proceeds will be used to pay for preferred stock allocations.
The average selling price is higher than the cost of holding the position.
The announcement shows that the average net selling price of this batch of Bitcoins was $77,135 per coin. According to the company's disclosure, as of May 31, Strategy still held 843,706 Bitcoins, with an average purchase cost of $75,699 per coin.
This means that the selling price was higher than the average cost of the company's overall holdings. According to data in the CoinDesk article, the spot price of Bitcoin on Monday was approximately $73,400, lower than the average selling price disclosed in this report.
The funds will be used for preferred stock allocation.
The company disclosed that the proceeds from this sale will be used for preferred stock distribution payments. A footnote in the document mentions that the use of these funds is related to the company's preferred stock arrangements, but no further plans for sale are disclosed in the document.
In terms of scale, this transaction has a minimal impact on Strategy's overall Bitcoin holdings. Following the sale, the company remains one of the largest publicly traded companies globally in terms of Bitcoin holdings, and its treasury strategy has not undergone any significant adjustments.
First disclosure of selling Bitcoin
The market had previously focused more on Strategy's continued accumulation of Bitcoin, but this filing reveals that the company also engages in small-scale disposals of its holdings under specific funding arrangements. Since the sale involved only 32 Bitcoins, a negligible percentage compared to its total holdings of over 840,000 Bitcoins.
The focus of this disclosure is not on the reduction of holdings itself, but on the company's first explicit statement that a portion of its Bitcoin holdings can be used to meet cash allocation needs in its capital structure.
