Strategy, the largest corporate bitcoin holder, sold another $105 million worth of bitcoin last week, trimming its treasury by 1,638 BTC while simultaneously repurchasing $81.2 million of its STRC preferred stock and raising $290 million through common stock sales. The sales continue a bitcoin monetization program that Strategy initiated earlier this year, marking a significant shift from the company's traditional buy-and-hold approach. Despite the sales, the company's USD Reserve has hit a new high of $4 billion — enough cash to pay two years and four months of dividends on its outstanding preferred shares.
The Mechanics
The bitcoin sale of 1,638 BTC worth approximately $105 million represents a continuation of the company's strategy of selling bitcoin to fund capital management initiatives. The proceeds were used partly to repurchase STRC preferred stock at a time when the preferred shares have been trading at attractive levels. STRC rose nearly 3 percent following the announcement, reaching a six-week high above $92. The preferred stock's 12 percent dividend yield has made it an attractive target for repurchase, and Strategy's actions suggest the company sees value in reducing its preferred share obligations. The common stock, MSTR, was up 1.5 percent, while bitcoin traded around $63,700. The company also raised $290 million through sales of common shares, adding to its substantial cash reserves.
Saylor Defends the Strategy
The sales have drawn attention given Saylor's long-standing public stance as a bitcoin maximalist who advocates never selling. In a recent post, Saylor sought to clarify the distinction between his personal holdings and the company's treasury management. "I speak as one saver to another," Saylor wrote. "I have never sold my bitcoin. Not one satoshi. Strategy is a public company, not my personal wallet. Since 2020, it has disclosed it may buy or sell bitcoin to manage capital." The explanation draws a clear line between Saylor's personal conviction and the company's fiduciary obligations. Strategy had previously hinted at resuming bitcoin purchases after a five-week pause, but the current selling pattern suggests the company is prioritizing capital management over accumulation for now.
The Bigger Picture
Strategy's bitcoin monetization program reflects a maturation of the corporate bitcoin treasury model. Companies that hold large bitcoin positions need to manage their capital structures, and selling some bitcoin to fund preferred stock repurchases or common stock issuance is a standard corporate finance maneuver — even if it conflicts with the narrative of permanent holding. The $4 billion USD Reserve is a significant cushion. It provides the company with substantial optionality — the ability to buy bitcoin if prices fall, repurchase more STRC if it remains undervalued, or simply hold cash as a buffer against market volatility. This approach contrasts with American Bitcoin's strategy of accumulating mined bitcoin rather than selling, highlighting the diversity of corporate crypto treasury management approaches.
Market Impact
The ongoing sales have raised questions about whether Strategy's selling could be putting downward pressure on bitcoin prices. However, the relatively modest size of each weekly sale — $105 million in this case — is small compared to bitcoin's daily trading volume, suggesting the market impact is likely minimal. The more significant signal may be the STRC repurchase, which suggests Strategy's management believes the preferred stock is undervalued at current levels. If the company continues repurchasing STRC while selling bitcoin, it is effectively betting that the preferred stock will outperform bitcoin on a risk-adjusted basis — a notable position for the company most associated with the bitcoin-as-a-store-of-value thesis.
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