MicroStrategy — now operating under the brand Strategy — disclosed this week that it sold 1,638 Bitcoin, the first such sale in months. The company offloaded the coins at an average price of $63,957, well below its cost basis of $75,419, taking a loss of roughly $11,500 per coin. The move comes just days after founder Michael Saylor publicly dismissed rumors that the company would sell, and he was quick to draw a line between his personal holdings and the firm's actions.
Saylor draws a line between his wallet and Strategy's
Michael Saylor has never sold any of his personal Bitcoin, not even one satoshi, he claimed this week. He was careful to separate his own behavior from the company's. "Strategy is a public company, not my wallet," Saylor said. The distinction matters because two days before the sale disclosure, Saylor had shut down speculation about a sell-off, saying the company never had a formal never-sell policy. That comment, in retrospect, was a hint that the corporate treasury might move coins — but Saylor's own stack remains untouched.
A $11,500 loss per coin
Strategy's Bitcoin holdings fell to 842,138 BTC as of August 2, down from 843,738 in late May. The 1,638 coins were sold at a loss of about $11,500 each, a rare red ink trade for a company that has been the most aggressive corporate buyer of Bitcoin since 2020. The sale raised $250 million in USD, boosting Strategy's cash reserve to $4.0 billion. That cash was immediately put to use: the company retired $81 million of its STRC preferred shares, which carry a 12% annual dividend.
Preferred share buyback and dividend pressure
The preferred share buyback is a direct response to mounting dividend costs. Strategy's preferred dividends hit $400.7 million in the second quarter, up from $49.1 million a year earlier. That's an eightfold increase. Selling Bitcoin to retire high-cost preferred shares reduces the dividend burden, even if it means taking a loss on the crypto side. The timing isn't great for Bitcoin bulls, but the math makes sense for a company trying to manage its capital structure.
Next disclosure in a week
Strategy is expected to file its next public disclosure within a week. That filing will show whether the 10-week pause in net Bitcoin buying was a temporary breather or a more fundamental shift in strategy. If the company continues to sell, it would mark a departure from the relentless accumulation that defined its approach since 2020. If it resumes buying, the sale will look like a one-off to manage preferred share costs. Either way, the market will get an answer soon.
