Strategy Sells Bitcoin for First Time Since 2022 to Support Preferred Stock Payouts
Strategy has completed its first bitcoin sale since late 2022, disposing of 32 BTC between May 26 and May 31 for approximately $2.5 million. The company sold the coins at an average price of $77,135 each, according to a filing submitted to regulators on Monday.
The transaction represents a rare departure from the firm's long-standing bitcoin accumulation strategy. Management indicated that proceeds from the sale will be directed toward funding distributions tied to its preferred stock offerings rather than reducing its overall exposure to the cryptocurrency.
Despite the sale, Strategy remains the world's largest corporate bitcoin holder, controlling 843,706 BTC acquired at an average purchase price of $75,699 per coin. The firm's bitcoin reserves were accumulated at a total cost of roughly $63.9 billion, including associated fees and expenses.
The company has continued raising capital through its equity programs. During the same period, it sold nearly 802,000 shares of its common stock, generating approximately $128.3 million. However, none of those proceeds were used to acquire additional bitcoin. Strategy still has significant capacity remaining under its expanded at-the-market fundraising programs, which include common stock and multiple preferred stock offerings.
Market speculation about a potential bitcoin sale intensified after blockchain data revealed the movement of more than 400 BTC from a Coinbase Prime custody account to a cold storage wallet in late May. Company executives had previously suggested that limited bitcoin sales could be used to support dividend obligations linked to STRC, its perpetual preferred stock product.
Executive Chairman Michael Saylor has consistently emphasized that any future sales would be small relative to the firm's broader accumulation strategy. He previously stated that Strategy intends to acquire substantially more bitcoin than it sells over time, describing the approach as maintaining a net-positive accumulation position.
Alongside the bitcoin transaction, Strategy recently repurchased $1.5 billion in convertible notes at a discount, using cash reserves to retire debt ahead of maturity. Following the repayment, the company reported holding approximately $900 million in U.S. dollar reserves.
Strategy's bitcoin holdings currently account for more than 4% of the cryptocurrency's fixed supply, reinforcing its dominant position among public companies embracing bitcoin treasury strategies. While dozens of firms have adopted similar models in recent years, Strategy remains far ahead of its closest corporate competitors in terms of total bitcoin ownership.
Investor sentiment toward bitcoin treasury companies has become more cautious in recent months, with concerns emerging around valuation premiums and aggressive acquisition programs. Strategy's shares declined modestly last week, while bitcoin also experienced a broader market pullback.