Strategy disclosed that it sold 32 bitcoins in the past week, realizing approximately $2.5 million. This is the first time the company has disclosed a net reduction in BTC holdings since 2022. The company stated that the proceeds from the sale will be used to pay dividends on STRC perpetual preferred stock.
Reason for sale
The company stated that the transaction occurred amidst a weakening of Bitcoin. The average selling price was $77,135 per coin. Strategy has historically emphasized a "long-term" approach to Bitcoin, but management has recently indicated that limited sales might be considered to support funding and financial goals.
Use of funds
STRC is a key component of Strategy's financing structure. This preferred stock offers returns to investors and is backed by the company's Bitcoin balance sheet. Strategy also funds its treasury strategy through instruments such as common stock issuance.
Markets are under pressure in tandem
This disclosure came during a period of overall decline in the crypto market. Bitcoin has fallen more than 42% from its all-time high, and the spot Bitcoin ETF has recorded net outflows for 10 consecutive days. The report also stated that after BTC fell below $71,500, more than $90 million in futures positions were liquidated.
Additional information:Strategy CEO Phong Le stated in the May earnings call that the company aims to continue net buying of Bitcoin while increasing the Bitcoin content per share.
