Strategy executed its largest Bitcoin sale in six years, offloading $216 million worth of the cryptocurrency over the past week. This move follows the company’s recent plan to raise up to $1.25 billion by selling Bitcoin to increase liquidity and avoid diluting shareholders through issuing new equity.
The immediate market reaction saw Strategy’s shares drop nearly 5% at the opening but then partially recover to around $100. Bitcoin’s price briefly dipped by nearly 1% after the announcement before rebounding above the $62,000 mark. This sale comes shortly after the company sold a smaller portion—32 Bitcoins valued at $2.5 million—in June as part of its strategy to stabilize cash flow and market confidence.
Originally, Strategy built its reputation on accumulating Bitcoin rather than selling. Since 2020, under Michael Saylor’s leadership, the company steadily increased its holdings, which now total roughly $52 billion—about 4% of Bitcoin’s total supply according to its own disclosures. Saylor, once outspoken against selling Bitcoin, has shifted course amid recent market turbulence.
The broader crypto market has faced significant instability, including a historic liquidation event in October last year that erased over $19 billion in leveraged positions. Bitcoin’s value has fallen more than 40% since then, weighing heavily on Strategy’s stock, which has declined over 37% in the same period. The company’s perpetual preferred stock, known as STRC or “Stretch,” has also fallen below its $100 peg, trading around $89 on Monday despite promoting it as a stable, high-dividend investment vehicle.
Strategy relies on proceeds from STRC sales to fund Bitcoin purchases and meet debt obligations, but recent market conditions have tested this model. Meanwhile, other public companies following Strategy’s crypto accumulation playbook have struggled. Firms like Solmate and Cantor Fitzgerald’s BSTR have seen their crypto-linked valuations plunge or faced investor hesitancy.