Technology company Strategy has sold 6,948 Bitcoin for approximately $432.5 million since May, as part of a new capital management framework. The sales aim to fund dividends, replenish cash reserves, and repurchase securities.
Strategy's decision to sell Bitcoin signals a potential shift in corporate treasury strategies, demonstrating that even companies with a strong 'buy-and-hold' ethos may liquidate crypto assets under certain financial pressures or strategic opportunities.
Strategy, a publicly traded technology company and one of the largest corporate holders of Bitcoin, has begun selling portions of its cryptocurrency holdings. Since May, the company has sold 6,948 BTC for approximately $432.5 million. These sales are part of a new capital management strategy aimed at funding dividends, replenishing its cash reserves, and repurchasing securities, particularly its preferred stock.
The shift away from a strict buy-and-hold approach was influenced by market conditions and a decline in Strategy's share price, which constrained its ability to raise capital through equity issuance. CEO Phong Le stated that the company would sell Bitcoin when it benefits shareholders, such as when selling BTC is more advantageous than selling equity for dividend payments. Executive Chairman Michael Saylor clarified that the company's goal is to "never be a net seller" of Bitcoin, rather than never sell at all.
In late June, Strategy formalized this strategy with its Digital Credit Capital Framework, which allows for the sale of up to $1.25 billion in Bitcoin. Proceeds from these sales have been used for preferred stock dividends, interest payments, and share buybacks. Despite these sales, Bitcoin remains Strategy's primary treasury asset, with the company holding over 840,000 BTC, valued at approximately $53.6 billion, according to its latest SEC filing.