Bitcoin's Biggest Buyer Just Sold Some. Should Other Investors Follow Suit?
Written by Alex Carchidi for The Motley Fool -> Strategy said in its Q1 earnings that it'd likely sell some Bitcoin soon. The sale wasn't actually necessary to cover any of the company's obligations. On June 1, Strategy (NASDAQ: MSTR) , the company that built its entire identi
Strategy said in its Q1 earnings that it'd likely sell some Bitcoin soon.
The sale wasn't actually necessary to cover any of the company's obligations.
On June 1, Strategy (NASDAQ: MSTR) , the company that built its entire identity around accumulating Bitcoin (CRYPTO: BTC) , sold some of the coin for the first time in nearly four years, and the market isn't pleased despite the piddlingly small quantities involved. It offloaded just 32 Bitcoins for a total of $2.5 million in proceeds. Since the filing was disclosed, Strategy's shares have fallen 9.3% on June 2 alone, and Bitcoin has lost 6.1%.
Selling 32 out of 843,706 Bitcoins is the financial equivalent of taking a few pennies from a vault of piled treasure. But the psychological significance of this particular sale is what makes it worth talking about. So, let's examine what's going on here a bit more closely, then evaluate whether it might be worth thinking about selling the coin.
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The point of Strategy selling Bitcoin is that the proceeds of the sale funded the company's dividend payments on Strategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock (Stretch), a class of its perpetual preferred stock. Stretch pays a variable annualized yield of 11.5% in monthly cash installments and has grown to a market cap of $10.5 billion since its 2025 debut, so it imposes a substantial financial obligation on the issuer. Servicing the dividend runs at roughly $100 million per month.
But this sale was too small to cover even one month of that required outlay because, quite interestingly, it was designed to fulfill a psychological purpose rather than a financial one.
During Strategy's first-quarter earnings call on May 5, chairman Michael Saylor told investors that the company would "probably sell some Bitcoin to fund a dividend just to inoculate the market -- just to send the message that we did it." The idea was to expose the market to a tiny, planned sale now, so that a future, larger sale would look routine rather than a cause for panic. Notably, any Bitcoin sale goes back on Strategy's long-held claims that it'd never touch its coins.
