During an exclusive interview on June 11, Strategy CEO Von Le noted that the sale of 32 BTC at the end of May was designed to signal to the market that Bitcoin can be sold when necessary. Strategy has also announced a $900 million reserve assigned for preferred dividends and debt-linked payments while maintaining an 11.50% annual dividend rate for STRC.
According to a CoinPost report, the strategy purchased roughly 1,550 BTC between June 1 to 7, with a total acquisition of about 1,500 BTC this month.
The BTC sale sparked mixed reactions, as it signified Strategy’s first BTC disposal since 2022. Some skeptics interpreted it as a potential shift in the company’s strategy. Conversely, according to a Bitcoin News report, the transaction was not necessarily a bearish signal, referring to relatively low exchange inflows and minimal selling pressure in the market.
Le outlined three reasons for the BTC sale. First, to project the market that Strategy has an objective and ability to sell Bitcoin if needed. Second, test and validate the operational process of selling the BTC, which is more complex than buying. Lastly, to realize tax losses that can be used to develop tax assets shown in the Strategy’s balance sheet over time.
As of May 31, Strategy managed 843,706 BTC, creating the 32 BTC for sale a minimal part of its total holdings. The acquisitions made between June 1 to 7 were funded by roughly $181 million increased through the sale of about 1,409,600 shares of MSTR common stock, with an average purchase price of approximately $65,332 per BTC.
Some investors raised concerns about the potential expansion of Bitcoin sales in the future. In response, Le clarified that there is no requirement to sell BTC to fund the preferred share dividends, stating that such obligations can be met by substitute financing strategies.
Furthermore, he also highlighted the four key stakeholder groups the company must consider such as common shareholders (MSTR), preferred shareholders (STRC), creditors, and Bitcoin holders. He added that BTC would only be sold when it is regarded beneficial for common shareholders, emphasizing that Strategy had made similar sales decisions in the past.
Michael Saylor likewise highlighted that if markets come to accept that BTC holdings will never be purchased, credit rating agencies may initiate to account for them as liquid assets, emphasizing the importance of maintaining the flexibility to sell.
Nonetheless, Le restated Strategy’s commitment to consistently expanding its BTC holdings, underscoring that accumulation is an ongoing core priority than a single strategic approach. Additionally, he noted that this approach is projected to reinforce the firm’s long-term position in the cryptocurrency market, noting that it will remain the world’s largest Bitcoin holder and one of its largest buyers.
