Strategy sold a small portion of its Bitcoin holdings last week, marking the company’s first disclosed BTC sale since a tax-loss harvesting deal in December 2022. The sale isn’t so much notable for its size as it suggests: Strategy is now poised to use a slice of its Bitcoin stack to service the preferred equity structure it has built around its balance sheet.
According to Form 8-K foot With the US Securities and Exchange Commission, Strategy sold 32 bitcoins between May 26 and May 31 for approximately $2.5 million. The average selling price was $77,135 per bitcoin, after fees and expenses. Proceeds from the sale are expected to be used to fund distributions on preferred shares, the company said.
Why did the strategy sell Bitcoin?
The deal is the first Bitcoin sale disclosed by Strategy since December 2022, when the company sold 704 Bitcoin for tax loss harvesting purposes before buying back more Bitcoin two days later. This earlier sale was widely framed as a tax maneuver rather than a strategic reduction in exposure. The new sale is different in nature: it appears to be related to preferred stock liabilities rather than portfolio tax management.
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Bitcoin’s position for the strategy remains massive. As of May 31, the company owned 843,706 bitcoins acquired at a total purchase price of $63.87 billion, meaning an average purchase price of $75,699 per bitcoin. Against this situation, the 32 BTC sale represents a slight decline in major holdings, but still breaks a long-term pattern in which Strategy’s BTC disclosures have been almost exclusively about accumulation.
The filing also shows that the strategy continued to use its capital markets mechanisms during the same period.
Between May 26 and May 31, the Company sold 801,994 shares of MSTR common stock under its at-the-market program, generating net proceeds of $128.3 million. As of May 31, the strategy listed $26.137 billion of remaining available issuance capacity for MSTR shares, along with remaining preferred stock issuance capacity of $1.619 billion for STRF, $17.511 billion for STRC, $2.1 billion for STRK, and $4.015 billion for STRD.
Bitcoin is selling off on the back of recent comments from CEO Michael Saylor and CEO Fong Lu, who did so Both have been mentioned in recent weeks This strategy can sell BTC under certain conditions. However, Saylor also confirmed that the company expects to buy more Bitcoin than it sells, keeping the market focused on whether any isolated selling will be offset by a larger accumulation.
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This question remains open during the last reporting period. On May 31, Saylor posted on X: “Working better.” The phrase seemed to provoke another purchase, consistent with what he had made The usual cadence before official strategy updates. But no such purchase announcement had been made at press time, leaving investors waiting for confirmation on whether the company had bought more bitcoin than it sold during this period.
The strategy also revealed that its US dollar reserves stood at $900 million as of May 31. The reserve, which was announced in December 2025, is a liquidity pool allocated by management aimed at supporting… Dividends on preferred stock and interest payments on outstanding debts. This reserve is important because it is at the heart of the company’s newest capital structure: the strategy has combined preferred stock, common stock issuance, and bitcoin holdings into a balance sheet model that relies on continued access to liquidity.
The Company’s Board of Directors declared a cash dividend payable on June 30 to holders of record as of June 15. Announced payments include $2.50 per share for STRF, $0.958333333 per share for STRC, $2.50 per share for STRE, $2.00 per share for STRK, and $2.50 per share for STRD. The strategy also said that the common dividend rate on its Series A variable rate preferred stock, STRC, will remain at 11.50% per annum for monthly periods beginning on or after June 1.
At press time, Bitcoin was trading at $71,637.
Featured image created with DALL.E, a chart from TradingView.com
