During a recent event at BTC Prague, Michael Saylor addressed the recent sale of 32 Bitcoin (BTC) by his company, Strategy. This transaction has sparked controversy as Saylor has long been an advocate for never selling Bitcoin, prompting questions from investors about the implications of this move.
The sale occurred between May 26 and May 31 and netted approximately $2.5 million at an average price of $77,135 per coin, which slightly exceeds its $75,699 cost basis. The transaction was publicly revealed in a filing with the SEC on June 1, leading to a nearly 6% drop in Strategy’s stock price. This marked the company’s first sale of Bitcoin since December 2022 and quickly became a hot topic of discussion within the investment community, even instigating a $15 million dispute on the Polymarket platform regarding contract settlements.
The proceeds from the Bitcoin sale are intended to fund distributions on Strategy’s preferred stock, as the company’s board had declared cash dividends across all five preferred series effective June 30. This action represented just a minuscule 0.004% of Strategy’s total Bitcoin holdings, which amounts to roughly 843,706 BTC valued around $62 billion. Despite this small transaction, the company has already shown signs of slowing its Bitcoin accumulation, having paused purchases ahead of its spring earnings and skipping weekly purchases altogether.
Confronting the criticism directly, Saylor claimed, “I said to YOU never sell your bitcoin,” aiming to clarify his stance during his speech in Prague. He emphasized that his advice was aimed at individual investors, while the corporate sale was a necessary financial decision related to fulfilling specific obligations. He framed the sale as a standard treasury management action rather than an indication of an exit from the cryptocurrency.
Saylor dismissed online mockery regarding the sale, arguing that it would be imprudent for any company to categorically avoid selling assets when liquidity needs arise. He stressed that the decision was motivated by financial requirements rather than a pessimistic outlook on Bitcoin’s future. The size of the sale, when compared to the company’s vast Bitcoin position, supports this interpretation.
However, skepticism remains among analysts, with some expressing concerns that this situation intensifies pressure on Strategy, especially as its stock prices linger below recent highs. The upcoming date of June 30 is crucial, as investors will closely monitor whether the company will continue to rely on its Bitcoin holdings to meet preferred stock dividend obligations or will fund these distributions from newly generated capital.
