Strategy Sells Bitcoin for First Time Since 2022 While Still Holding 843,706 BTC
Key Takeaways: It was the first Bitcoin sale since 2022 as Strategy sold 32 BTC for $2.5 million. Distribution of proceeds to be used on the company’s preferred stock. Following the sale, Strategy is still the largest fi...
Key Takeaways:
- It was the first Bitcoin sale since 2022 as Strategy sold 32 BTC for $2.5 million.
- Distribution of proceeds to be used on the company’s preferred stock.
- Following the sale, Strategy is still the largest firm Bitcoin holder with 843,706 BTC.
Strategy has revealed its first Bitcoin sale since the end of 2022, after years of maintaining a strong strategy of accumulation. The shift follows the company’s inability to pay dividends on its expanding offering of preferred stock products.
Strategy Reports First BTC Sale in Nearly Four YearsThe U.S. Securities and Exchange Commission’s Form 8-K filing reveals that Strategy sold off 32 BTC between May 26 and 31, making off a backup of $2.5 million in revenue.
The company stated that the funds are expected to support distributions on its preferred stock offerings. The average sale price was $77,135 per Bitcoin. Although the transaction is small, it is notable because Strategy has rarely sold Bitcoin since adopting BTC as its primary treasury reserve asset.
Read More: Michael Saylor Sparks Fresh Bitcoin Buy Buzz as Strategy Nears $62B BTC Stockpile
Bitcoin Holdings Remain Largely UnchangedThe sale has little impact on Strategy’s overall Bitcoin position. It’s known that at today that the company has 843,706 BTC with a total acquisition cost of $63.87 billion. On average, it costs $75,699 for each Bitcoin.
The 32 BTC involved, accounts for less than 0.004% of the company’s total holdings, emphasizing that Strategy does not have any immediate or significant pressure on its long-term Bitcoin strategy.
Sale Linked to Capital ManagementThe filing, not a sign of change in attitude, merely implied the company was doing some routine treasury management.
In other news, strategy recently announced dividend payments on a number of preferred stock products, including STRF, STRC, STRK, and STRD. The firm also announced that the annual dividend on STRC would not be changed and will be kept at 11.5%.
In meeting these obligations, Strategy holds a reserve of U.S. dollars, consisting of $900 million as of May 31.
Read More: Strategy Hits Bitcoin Break-Even at $75K
Equity Sales Continue Alongside Bitcoin StrategyDuring the same reporting period, the filing also indicated that Strategy sold 801,994 shares of MSTR stock, generating gross proceeds of $128.3 million with net proceeds of $128.3 million. Beyond its Bitcoin reserves, the company also has significant at-the-market equity roll-outs left to go, as well.
For crypto investors, what matters is the volume of the sale, rather than its size. The sale is Strategy’s first up to bitcoin since 2022, though it still has a stockpile of over 843,000 BTC, making it the world’s largest corporate treasure trove of Bitcoin.
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