Strategy sells 32 Bitcoins to fund dividends, marking first sale in four years
Shares in Strategy fell 9.3% and Bitcoin dropped 6.1% following the disclosure, though the firm remains a net buyer of the asset.
Strategy (NASDAQ: MSTR) sold 32 Bitcoins for approximately $2.5 million on June 1, ending a nearly four-year streak of exclusively accumulating the digital asset. The company stated the transaction was designed to fund dividend payments on its Series A Perpetual Stretch Preferred Stock and to "inoculate the market" against the psychological impact of potential future, larger sales.
The sale occurred against a backdrop of significant volatility for the cryptocurrency, which has fallen more than 45% from its October 2025 all-time high of near $126,000. Broader factors contributing to the decline include a flash crash, macroeconomic instability, and reduced enthusiasm for crypto as an asset class. Following the disclosure, Strategy’s shares fell 9.3% on June 2, while Bitcoin’s price dropped 6.1%.
Strategy holds a total of 843,706 Bitcoins, making the 32-Bitcoin sale financially negligible, representing less than 0.004% of its holdings. However, the move carries psychological weight as it breaks the company’s long-held public stance of never touching its Bitcoin reserves. Chairman Michael Saylor disclosed the strategic intent during the first-quarter earnings call on May 5, stating the move was intended to "send the message that we did it" to normalise future sales.
The primary financial driver for the sale is the servicing of the Stretch preferred stock, which debuted in 2025 and has grown to a market capitalisation of $10.5 billion. The stock pays a variable annualised yield of 11.5% in monthly cash installments, imposing a substantial financial obligation on the issuer that runs at roughly $100 million per month. The $2.5 million proceeds from the Bitcoin sale were insufficient to cover even one month of these required outlays, underscoring the transaction’s symbolic purpose.
Despite the sale, Strategy raised $128 million through common stock sales in the same week and maintains its position as a net buyer of Bitcoin. The company continues to leverage equity issuance and Bitcoin exchange-traded funds to channel institutional capital, allowing it to accumulate the asset while occasionally selling small quantities to meet specific financing needs.
