Strategy Sells Bitcoin for First Time Since 2022, The Stock Is Sliding

Dow Jones06-01 22:18

Strategy's executive chairman, Michael Saylor, once swore the company would never sell Bitcoin. The world's largest holder of the cryptocurrency has since reversed that stance, recently executing its first strategic sale.

On Monday, Strategy disclosed that it sold 32 Bitcoin in the period from May 26 to May 31 at an aggregate price of $2.5 million, or roughly $75,699 apiece. The price of Bitcoin has fallen 2% over the past 24 hours to $71,960, according to CoinDesk data.

The proceeds from the sale are expected to be used to fund distributions on preferred stock, Strategy said. The transaction is the first of its kind, seeing as Strategy last sold Bitcoin back in 2022 solely for tax purposes. It comes just weeks after CEO Phong Le asserted that the company would sell crypto "when it is advantageous to do so."

Some crypto stocks fell in market trading. Robinhood and Circle down 7%, Strategy and Bullish down 6%, Coinbase down 5%.

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Comments

  • Guavaxf3006
    06-01 20:53
    Guavaxf3006
    The dam is bursting. MSTR is running out of cash his ponzi scheme had raised. Having to sell Bitcoin when it has not yet recovered fully in price is telling. And is is so loud.
    • JP25: 
      Yeah.. probably Saylor cannot sell anymore shares to buy BTC and now he is running out of money.. so he needs to sell existing BTC to keep the company operations running, if not will run into deficit.
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