Strategy Sells 32 BTC, Bitcoin Falls 10% and Preferred Stock Drops to $94.84
STRC•Strategy sold 32 BTC for $2.5 million, reversing its “never sell” policy and triggering a roughly 10% Bitcoin drop from $74,000 to $65,400. The preferred perpetual stock slipped from its $100 par value to $94.84 as the firm used $1.38 billion cash to retire $1.5 billion convertible bonds ahead of dividend payments.
1. BTC Sale and Market Reaction
Strategy executed its first Bitcoin sale since 2022, offloading 32 BTC for $2.5 million. The sale coincided with a 10% drop in Bitcoin’s price from $74,000 to $65,400 and added pressure on leveraged positions, which saw $1.76 billion in liquidations.
2. Policy Reversal and Bond Retirement
This sale marked a departure from the long-standing “never sell” doctrine championed by the firm’s leadership. Concurrently, Strategy deployed $1.38 billion in cash reserves to retire $1.5 billion of its 2029 convertible bonds, signaling a shift in capital allocation ahead of dividend obligations.
3. Preferred Stock Decline and Dividend Impact
Following these moves, the firm’s preferred perpetual stock fell from its $100 par value to $94.84, reflecting investor concern over cash depletion. The timing of the sale and bond retirement precedes a scheduled monthly dividend payout, raising questions about funding sources for future distributions.
