Strategy Sells $216M in Bitcoin, Breaking Saylor’s ‘Never Sell’ Creed

Strategy sold 3,588 Bitcoin (BTC) for US$216 million (AU$311.04 million) over the week ending July 5, its largest-ever liquidation of the asset, disclosing the move in a Form 8-K and signaling a shift from Michael Saylor’s long-standing refusal to part with any of the company’s holdings.

The sale came in two tranches, according to the filing: 1,363 Bitcoin at an average of US$59,256 (AU$85,329) between June 29 and 30, and 2,225 Bitcoin at an average of US$60,773 (AU$87,513) from July 1 to 5. 

Strategy said the proceeds covered second-quarter dividends on its STRF, STRE, STRK and STRD preferred securities and a payment on a fifth, STRC, which together anchor what it calls its Digital Credit business.

Related: Irish Authorities Recover Third Batch of Bitcoin from Convicted Drug Trafficker’s Lost Wallets, Now Totaling US$92 Million 

Dividends Drive the Reserve

After the sale, Strategy held 843,775 Bitcoin and about US$2.55 billion (AU$3.67 billion) in cash as of July 5, against a cost basis near US$63.9 billion (AU$92.02 billion), or roughly US$75,700 (AU$109,008) a coin.

The move obviously contradicts Strategy’s identity of relentless accumulation and once declared, “You do not sell your Bitcoin.” 

Both tranches sold below the company’s roughly US$75,700 (AU$109,008) average cost, meaning the coins were let go at a loss relative to what Strategy paid, underscoring that the sale was driven by cash needs rather than opportunistic profit-taking.

Bitcoin slipped below US$62,000 (AU$89,280) after the disclosure, and MSTR shares fell about 5%, extending a decline that has left them well off their recent highs. 

The company still holds close to 4% of all Bitcoin.

Read more: Bitcoin ETFs Suffer Record $4.5 Billion Exodus in June as Demand Cools