Key Highlights
- The company liquidated 32 Bitcoin during the final week of May for approximately $2.5 million
- Shares of MSTR declined 4.7% during Monday’s premarket session
- The cryptocurrency itself experienced a ~2% decline after the announcement
- Funds from the transaction will support preferred stock dividend obligations
- The firm maintains a position of 843,706 Bitcoin with an average acquisition cost of $75,699
Shares of Strategy (MSTR) experienced a 4.7% decline in Monday’s premarket session following the company’s announcement that it liquidated 32 Bitcoin during the previous week — marking the first such transaction since 2022.
According to documents filed with the SEC, the transaction occurred between May 26 and May 31. The company realized total proceeds of $2.5 million from the sale, averaging $77,135 per digital coin.
Bitcoin concurrently dropped approximately 2% to around $71,960 during this timeframe, with the company’s announcement seemingly contributing to downward price pressure.
Strategy’s previous Bitcoin sale occurred in 2022, executed solely for tax loss harvesting purposes. The current transaction marks a departure from that strategy — with proceeds designated specifically for preferred stock dividend payments.
This decision aligns with recent statements from CEO Phong Le, who indicated weeks earlier that the firm would liquidate cryptocurrency holdings “when it is advantageous to do so.” This represents a shift from Executive Chairman Michael Saylor’s previous stance that the company would maintain perpetual Bitcoin holdings.
Details From the SEC Filing
According to the May 31 disclosure, Strategy retains ownership of 843,706 Bitcoin. The aggregate acquisition cost for this position totals $63.87 billion, reflecting an average entry price of $75,699 per coin.
While the 32 Bitcoin sale constitutes a minimal fraction of the company’s total cryptocurrency portfolio, the decision to reverse its long-established no-sell policy triggered notable market reaction.
In addition to the Bitcoin transaction, Strategy liquidated 801,994 shares of common stock through its at-the-market equity program, securing $128.3 million in net proceeds. The company retains $26.1 billion in capacity under this program following a $21 billion expansion implemented in March 2026.
Dividend Announcements and Cash Reserves
Strategy’s board of directors authorized cash dividend distributions payable on June 30, 2026, for shareholders registered as of June 15.
Holders of the 10.00% Series A Perpetual Strife Preferred Stock (STRF) will receive $2.50 per share. Meanwhile, the Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) will receive $0.958333333 per share.
The company also confirmed it will sustain an 11.50% annualized dividend rate on STRC shares for monthly periods commencing June 1, 2026.
As of the end of May, Strategy reported a USD Reserve balance of $900 million. This reserve fund is earmarked exclusively for servicing preferred stock dividends and debt interest obligations.
The Bitcoin liquidation — despite representing only a modest portion of total holdings — demonstrates Strategy’s evolving willingness to deploy its digital asset holdings for meeting corporate financial commitments as circumstances require.
