Analysts divided on message of Strategy’s small bitcoin sale The move suggests a greater willingness on the part of Michael Saylor and Strategy to use BTC holdings to support the capital structure, said one analyst, while others disagreed.
What to know: – Strategy’s sale of 32 bitcoin, its first in four years, raised questions about whether the company is shifting its long-standing accumulation strategy. – Two Wall Street analysts said the roughly $2.5 million sale was economically immaterial and viewed it as a tactical move to help fund preferred-stock dividends rather than a meaningful policy change, while another suggested something larger was afoot. – Strategy is lower by 5% on Monday, while bitcoin has fallen back to a near two-month low of $71,000
For years, Strategy (MSTR) Executive Chairman Michael Saylor insisted he would never sell bitcoin Yet on Monday, the largest company disclosed that it sold 32 bitcoin last week, its first sale in four years. The announcement prompted questions about whether one of bitcoin’s most prominent corporate advocates was changing course. Most analysts don’t think so.
While the transaction sparked debate among investors, they largely agree that the sale was too small to alter Strategy’s long-term bitcoin accumulation strategy. The company on Monday said that it sold 32 bitcoin between May 26 and May 31 at an average price of $77,135, generating roughly $2.5 million to help fund dividend payments on STRC, its high-yielding perpetual preferred stock known as Stretch. Strategy still held more than 843,700 BTC at the end of May, meaning the sale represented about 0.004% of its total holdings.