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Strategy sold 32 Bitcoin between May 26 and May 31 for about $2.5 million. The sale, at an average net price of $77,135 per BTC, was its first disclosed Bitcoin sale since a December 2022 tax-loss transaction.
The company said the proceeds are expected to fund distributions on its preferred stock.
32 BTC Sale Barely Dents 843,706 BTC Treasury
The sale was small compared with Strategy’s total Bitcoin holdings. As of May 31, the company still held 843,706 BTC acquired for about $63.87 billion.
Its average purchase price stood at $75,699 per Bitcoin. The sale represented only a small fraction of Strategy’s balance sheet. It still drew attention because the company has long been known for accumulating Bitcoin rather than selling it.
Preferred-Stock Dividends Due June 30
The filing tied the Bitcoin sale to Strategy’s preferred-stock structure. On May 30, the board declared cash dividends payable on June 30 across multiple preferred classes, including STRF, STRC, STRK and STRD.
For STRC, Strategy said the dividend rate for monthly periods starting June 1 will remain 11.50% per year. The June cash dividend is $0.958333333 per share.
$900M Reserve Backs Dividends and Debt Payments
Strategy also disclosed that its U.S. dollar reserve stood at $900 million as of May 31.
The company said the reserve is intended to support preferred-stock dividends and interest payments on outstanding debt. That helps explain why even a small Bitcoin sale carried attention beyond its dollar value.
Strategy Shares Fall 6% After Filing
Investors reacted negatively after the disclosure. Strategy shares fell roughly 6% on Monday after the filing, according to MarketWatch and Barron’s.
The drop came even though the Bitcoin sale was limited relative to the company’s total holdings.
$128.3M Stock Sale Adds Fresh Capital
Strategy was still raising capital through stock issuance during the same period. The company sold 801,994 shares of MSTR common stock between May 26 and May 31, generating about $128.3 million in net proceeds.
It also said about $26.14 billion remained available for future MSTR issuance under its at-the-market program. The filing shows Strategy used a small portion of its Bitcoin holdings to support preferred-stock distributions while keeping most of its Bitcoin reserve intact.
