Strategy sells 32 Bitcoin for $2.5M, breaking its never-sell pledge

Strategy sold 32 Bitcoin for $2.5 million between May 26 and May 31, its first disclosed disposal of the cryptocurrency, according to an 8-K filing.

"The sale proceeds will fund distributions on the company's preferred stock," the filing said, adding that the average sale price was $77,135 per coin.

Strategy still held 843,706 Bitcoin as of May 31 at an average purchase price of $75,699, putting the sale above its cost basis. The company raised $128.3 million through its at-the-market common stock program during the same week, boosting its cash reserve to $900 million from $871 million.

The sale comes as Strategy faces mounting capital pressure. The company spent $1.38 billion in May buying back $1.5 billion face value of its 2029 convertible notes, and a June 8 vote by STRC holders on shifting preferred dividends to semi-monthly payments adds another near-term deadline.

Bitcoin briefly dropped below $72,000 following the news, with over $90 million in BTC-tracked futures positions liquidated, per CoinDesk data. MSTR shares fell more than 5 percent in US pre-market trading.

The disposal marks a departure from the company's long-standing position that it would never sell its Bitcoin holdings. Executive Chairman Michael Saylor posted "Working ₿etter" on X on May 31, a pattern that has historically preceded Bitcoin acquisition announcements, though no new purchase has been disclosed.

Arca chief investment officer Jeff Dorman warned that roughly $15 billion in outstanding preferred stock and approximately $1.5 billion in annual dividend obligations now put strain on the accumulation model. "Someone is going to lose badly here, and it will happen in the next four months," Dorman said.

This article is for informational purposes only and does not constitute investment advice.