Strategy sold 32 bitcoin between May 26 and May 31 at an average price of $77,135 per coin, netting $2.5 million. The sale funds distributions on the company's preferred stock, STRC. It's the first time Strategy has sold any bitcoin since December 2022.
The sale in context
Strategy still holds 843,706 BTC, worth roughly $61 billion at current prices. That's more than 4% of bitcoin's fixed 21 million supply. The company's total cost basis sits at $75,699 per coin, meaning the overall position is underwater by about $2.9 billion on paper. Tuesday's price slip below $72,000 didn't help — bitcoin dropped nearly 3% in 24 hours after the filing crossed the wire.
The liquidation wave that followed was brutal. Over $93 million in crypto futures positions got wiped in one hour, 95% of them longs. Bitcoin alone accounted for $72.34 million of that. Across the full day, $402 million in positions were liquidated, 135,585 traders caught offside.
Why sell now?
Michael Saylor has been clear about the math. He said bitcoin needs to appreciate at 2.3% per year for existing holdings to cover STRC dividend obligations without selling common stock. This sale is a direct result of that obligation. But Saylor also framed it as a net-accumulation strategy: the company plans to buy 10 to 20 bitcoin for every one it sells. That won't make up for the sale in absolute terms, but the message is that STRC-driven sales shouldn't signal a shift in strategy.
The timing isn't great. U.S.-listed spot bitcoin ETFs just logged a record 10-session outflow streak through May 29, with $2.97 billion drained. Broader markets are jittery too — Brent crude climbed above $93 a barrel on stalled U.S.-Iran ceasefire talks, pulling risk appetite away from crypto and equities alike. MSTR shares fell 5.15% in premarket trading.
The balance sheet picture
Strategy raised $128.3 million through its at-the-market common stock program last week, and still has roughly $26.1 billion remaining under that ATM. Cash reserves stood at $900 million as of May 31. The company also used $1.38 billion to retire $1.5 billion face value of 2029 convertible notes at an 8% discount to par — a move that strengthens the balance sheet.
This is the first bitcoin sale in over three years. Back in December 2022, Strategy sold 704 BTC at roughly $18,000 each, then later bought back 810 BTC at a lower price in a tax-loss trade. That one was tactical; this one is tied to a dividend obligation. The market will be watching for the next STRC payment date and whether bitcoin stays above the 2.3% appreciation threshold Saylor cited.
