The strategy breaks a four-year streak of buying Bitcoin with a surprise selloff
The scheme ended nearly four years of uninterrupted Bitcoin accumulation after selling 32 BTC for $2.5 million during the last week of May.
Summary
- The strategy sold 32 BTC for $2.5 million, ending nearly four years of uninterrupted Bitcoin accumulation.
- The company said the proceeds from the sale will be used to fund a preferred stock distribution, while holdings were reduced to 843,706 BTC.
- The sale followed the transfer of 411.48 BTC to Coinbase Prime and recent comments from management that future Bitcoin sales remain possible.
According to the 8-K form filed with the US Securities and Exchange Commission on June 2, the company sold Bitcoin at an estimated price of $77,135 per coin, reducing its holdings from 843,738 BTC to 843,706 BTC.
The filing stated that proceeds from the sale are expected to be used to fund the distribution of Strategy’s preferred stock.
Although the amount sold represents a small portion of the company’s assets, the transaction is the first reported sale of Bitcoin by Strategy since a tax-related transaction in December 2022.
Company records show that the previous transaction involved the sale of 704 BTC, followed by the repurchase of 810 BTC two days later. Since then, Strategy has built its reputation by continuously growing its Bitcoin reserves through loans and financing.
Interest in the possibility of a sale has grown in recent days after the blockchain analysis platform Lookonchain reported that Isu transferred 411.48 BTC, worth about $30.3 million, to Coinbase Prime on May 29. Lookonchain said that the move appears to be the company’s first direct transfer of Bitcoin to the exchange in almost two years.
The administration acknowledged that the sale of Bitcoin could support financial needs
Recent comments from the company’s management had opened the door to the possibility of Bitcoin sales in the future.
During Strategy’s first quarter earnings call, executive chairman Michael Saylor said the company could sell Bitcoin if needed to help meet dividend obligations tied to preferred stock products. These comments have attracted attention because Strategy has long advocated a strategy focused on holding Bitcoin for the long term.
Additional company disclosures have linked Bitcoin sales to a possible broader debt management effort. The previous filing indicated that Strategy has moved to repurchase approximately $1.5 billion in face value of its 0% convertible senior notes due 2029 for approximately $1.38 billion.
Those letters said funding for the buyback could come from cash reserves, proceeds from marketable stocks, debt financing, or the sale of Bitcoin.
Speaking during a press conference on May 25, Saylor said it was “unlikely” that the Strategy would sell another Bitcoin before the end of 2026. He argued that using multiple sources of capital, including cash, equity, debt, and Bitcoin, produced better results than relying on a single method of financing.
The stock sell-off coincided with recent Bitcoin transactions
Alongside the Bitcoin sale, Strategy has also raised capital through its equity program.
The SEC filing disclosed that the company sold 801,994 shares of its Class A common stock, netting approximately $128.3 million during the same reporting period. No selective stock issuance was completed during the week.
Prior to the release of the filing, market watchers were expecting Strategy to announce a purchase of Bitcoin or a stock raise. STRC Live published estimates to that effect.
However, over the weekend some investors were anticipating new buying activity after Saylor shared a chart of Bitcoin’s recovery on X alongside the message “Outperform.”
Instead, the latest filing ensured a different result. Still, Strategy CEO Phong Le said last week that any future sales would not change the company’s long-term direction.
