Strategy Dumps 1,638 BTC Below Cost Basis.

[sunsilk]

To buy preferred shares instead of buying more BTC so why they did this? they're free to do that and I think that it's collaborated decision which is strategic for them.

As to why they need all those cash for shares buyback, this user actually summarize the latest interview

And most importantly, there was one very important point that many Bitcoiners didn’t really understand - it was only in 2026 that they realized institutional investors don’t treat liquid Bitcoin as the equivalent of dollars.

In fact all Strategy related purchased or bitcoin sale is covered on that thread as well for those that want the full and summarize version

Thanks for bringing it up, I'm already reading it and looks that all of these decisions are merely done for their investors.

More ahead I guess and what stuck in our heads was about Saylor's word about them not selling and that's why these sell offs prolly keeps on making headlines and the media continues to buff these as it gets more attention from the community.

But as said, they'll be back to continue their accumulation anytime soon.

[Accardo]

I would not say they did not understand Bitcoin, because they invested billions, so they must have some idea what they are doing. The sale of 1,638 is nothing, because they have announced their whole plan to sell $5 billion worth of Bitcoins. They divided this amount into three parts, one for cash reserves, one for dividends, and one for interest, if I am not wrong.

So, I am not surprised with their sale, because they have already announced it and they are now just selling in parts. But still, they are selling, while Saylor is giving hints on X that he is buying.

MSTR has also said once they are out of this, they will start buying again.

When financial advisors act under the pressure of entertaining numerous calls and questions from investors asking about bitcoin's bear, costing the company billions of dollars, quick actions like what is happening over the past two months of actively selling btc to use the proceeds to repurchase their own shares at a cheaper rate, and convincing investors to focus on doing the same has to be done to limit risks. Even if they know of bitcoin, it's clear they care more about saving the face of their company and investors than relying on what bitcoin price will do. Businesses are in for profits not losses, to make things worse, they're not in control of the losses from bitcoin. If their shares grows further from this step, expect the company to sell more btc for more shares.

[Pearl_20]

But as said, they'll be back to continue their accumulation anytime soon.

And you think they will start accumulating again after all these huge amount of bitcoins they are selling now. Even if they start accumulating again they have already given a wrong impression because people will still see it that they will start selling at a point again. Not that they shouldn't sell part of the their bitcoins but selling at this period when the market is bleeding is a very wrong thing to do, i don't even care the reason for selling. They should have waited till the price of bitcoin get to $80k or within that $75k which is the average purchasing price per each bitcoin they own.

[Coyster]

They should have waited till the price of bitcoin get to $80k or within that $75k which is the average purchasing price per each bitcoin they own.

You want to control what an institution does with their bitcoin, so much for a community that champions censorship resistance. Some of you guys forget that Strategy is a company at the end of the day, yes, they hodl a lot of bitcoins, but they also have other obligations, they have investors and stakeholders. They do not exist to please the bitcoin community.

If they want to sell, then they can sell. Just the way you can also sell whenever you want to. Plus, it is not like they are going to sell the thousands of bitcoin they hodl, so maybe some of you guys should chill out.

[JuxtaposeLife]

I'm pretty sure these sales (where the values exactly equal the amount of the dividends owed for the preferred products) are an attempt to show the S&P500 that the Bitcoin is liquid and can support the dividends when the market is down. Particularly when the company also waited like 5 times that from liquidity in their common stock that same week (meaning they didn't have to sell the Bitcoin, they chose to). Saylor has eluded to this being a line item on the S&P500 inclusion that they needed.

[LogitechMouse]

This decision is a big mistake, the pressure is probably from his company, accepting to sell below the $75,419+ average buying rate is doing MicroStrategy no good, the company will be recording about $11,419 in losses per btc if calculated at $64,000 price rate, total loss would be about 18 million dollars for 1,638 btc sold. This is what you get when people who do not fully understand bitcoin, indirectly invests into it, little harsh changes in bitcoin price feels so dangerous that all the parties involved including the lenders would be clamoring for their money.

Nope. They fully understands Bitcoin that's why they invested heavily on it. It's just that, there are some circumstances where it's more important than holding Bitcoin itself that's why they're forced to sell a portion of their holding.

Do a quick search and you will see that it's not only Strategy that's selling their Bitcoin during the bear market. Also, if you will see the reason behind their selling, it's all company-related reasons whether it's for them to raise capital or to fund on-going operations or to pay down debt. Whatever the reason is, these companies are selling their holdings for a reasons, and it's not that they really like to sell it at a loss. It's just they're forced to do it to keep the company afloat. Let's not judge Strategy like as if they're a new company and can't understand Bitcoin at all.

As for Strategy selling Bitcoin, it's no surprise that it didn't have that much of an effect towards the whole crypto market at all unlike when they first announced it when they sold 32 BTC where the market dumped immediately. It isn't the case this time. Well, expect more selloffs in the future.

[Dave1]

1. Strategy recently sold 1,638 BTC for approximately $105 million.
2. The sale was reportedly below Strategy’s average Bitcoin purchase price.
3. The proceeds were used mainly to support its preferred-stock strategy rather than buying more Bitcoin.

It's the timing of the selling, plus they don't have any choice but to pay dividends to they accept the lost and just move on. They still have a lot of Bitcoin holding though, so for sure that they are going to take a big risk again and wait till the bull run and they will be on the next positive again.

And this is not just for Strategy though, even average joe investor might have the same problem in the past that something came up and they will have to sell some of their stash to cover that issue. The thing is that Saylor might have give us a indication that they are not going to sell and instead continue to accumulate. But we all know that they are buying Bitcoin thru loans and other leverage and sooner or later they will have to sell to pay for it.

[Opiate32]

I don’t think the main issue is the amount sold. A company can sell part of its holding when it need liquidity but have u wondered what happens when this becomes a pattern. Strategy built it reputation around accumulating bitcoin, so if they keep selling BTC to handle preferred stock obligation while also raising obey elsewhere, at what point do they start looking different from what people originally expected?

[Faisal2202]

When financial advisors act under the pressure of entertaining numerous calls and questions from investors asking about bitcoin's bear, costing the company billions of dollars, quick actions like what is happening over the past two months of actively selling btc to use the proceeds to repurchase their own shares at a cheaper rate, and convincing investors to focus on doing the same has to be done to limit risks. Even if they know of bitcoin, it's clear they care more about saving the face of their company and investors than relying on what bitcoin price will do. Businesses are in for profits not losses, to make things worse, they're not in control of the losses from bitcoin. If their shares grows further from this step, expect the company to sell more btc for more shares.

Can't agree more, they can't risk losing their company name because it has become a brand in the history of Bitcoin, like Apple became in the history of digital products. They must preserve their name first, and BTC can be sold easily. Actually, they only have BTC to sell haha, as we know most of their investments on their balance sheet are in Bitcoin.

So if it goes up, MSTR's shares go up, and they can only go up if the demand increases or the price of BTC increases because once the price increases, their profits increase, and they use it as collateral to borrow more money to raise their shares.

Investors or the lenders took those shares because they think it is a good idea. Once they stop thinking it is a good idea, the chain will break, and we will see the biggest black swan event of our lives.

[Kelward]

With my background in economics I became worried for Strategy when I learnt that Saylor was using shareholders funds to accumulate Bitcoin, you cannot use funds that was meant for a perticular project to buy a volatile asset. If you want to pay the shareholders for profit made in the project that they invested their money on and you don't have sufficient funds to do so you will be compelled to either borrow or take money from where you invested it to pay them.

Saylor took a risk when he diversified investors funds into Bitcoin, now his selling at a lose when he needs the funds because we are in bear run, if this were bull run what they sold would have been from their profit. The biggest lesson for me in these scenerior is that we should invest in Bitcoin from our discretionary funds and we can afford to hold it for as long as we want. If you invest in Bitcoin with money that is not your discretionary funds you will be under pressure to sell probably at a lose to take care of your immediate needs which is what is happening to Strategy, now.

[aoluain]

So this sell off by Microstrategy is like 0.001% of their HODL'ings. I looks like they had to make
another sale which is ok in my book because I can relate to that, I have had to do the same myself
in the past but obviously on a different scale!

Anything MS does will create attention,  buying or selling. I think there is a good chance that when
the market shakes off the Bear phase and enters the Bull phase we will see MS buying again with
renewed buying demand and overall positive market outlook.

[Swordsoffreedom]

To buy preferred shares instead of buying more BTC so why they did this? they're free to do that and I think that it's collaborated decision which is strategic for them.

What they think right now as the bear market has come, they think to earn more from those preferred shares and I think it's still part of some obligation for their investors.

They are a company for no reason and the actual business that they are in, like in analytics so they've probably got reports and records which is the best thing to do for them right now.

Because they don't have any other options left. They bought Bitcoin by raising capital through debt offerings. At this point, they can hardly raise any more capital that way, while they still have to keep paying interest and dividends on the capital they raised before. It could be said that selling some of their Bitcoin is the best option for them right now.

Strategy used to be a software company with revenue from its business. But that may not really be the case anymore. At this point, Strategy is essentially more like a leveraged vehicle for holding BTC than a traditional software company. Their business revenue is now insignificant compared to the company's overall financial picture, which is largely centered around Bitcoin.

[Pearl_20]

They should have waited till the price of bitcoin get to $80k or within that $75k which is the average purchasing price per each bitcoin they own.

You want to control what an institution does with their bitcoin, so much for a community that champions censorship resistance. Some of you guys forget that Strategy is a company at the end of the day, yes, they hodl a lot of bitcoins, but they also have other obligations, they have investors and stakeholders. They do not exist to please the bitcoin community.

If they want to sell, then they can sell. Just the way you can also sell whenever you want to. Plus, it is not like they are going to sell the thousands of bitcoin they hodl, so maybe some of you guys should chill out.

I understand your point, after all this is not the first time that Strategy is selling their bitcoins. They once sold about 704 bitcoins in 2022 so we shouldn't be surprised that they are also doing the same now but somehow, it is still surprising because Michael Saylor made some tweets few months ago that sounded like they will be holding for long without selling. Who knows, they might start buying back again when the price crashes to a certain level because if they continue selling from now to the coming weeks and months, it will surely has negative impacts on the price of bitcoin especially now that they are selling in large amount.

[Mayor of ogba]

The major reason people are investing in bitcoin is mainly for profit. But for Strategy to sell 1,638 Bitcoins approximately $105 million which is below Strategy's average bitcoin purchase price shows that Strategy is desperately in need of money to care of important things, so I won't say Strategy made a mistake in selling 1,638 bitcoins, because we can sell part of our bitcoin holding when necessary to take care of some important things in our lives.

[Dr.Bitcoin_Strange]

Continued sales of this type, and extended pauses in additional purchases could signal problems for strategy with liquidity, capital structure, and confidence in Bitcoin at the current market level.

The company already announced a new digital capital framework in the month of June, I think they know what they are doing and despite the pause in buying more Bitcoin, they are still holding a large amount of Bitcoin and are still amount the company that holds large amount of Bitcoin in the world. Where I criticized the company is the idea of them selling Bitcoin at a lower price meanwhile they could have sold some of the Bitcoin they wanted to sell at the peak price of $120k, according to some of their reasons for selling those Bitcoin which states that they used debts to build their Bitcoin treasure and some of the debt have come to maturity and they have to sell to settle the debt, they should have already noticed this since last year but didn't sell until now. 

[AVE5]

It seems Strategy might be slipping and this isn't the first or second time they have had to sell off some BTC for reasons they best understand. This just shows that all the noise they made about holding for long term might have just been a marketing stunt to keep them relevant and more visible to the public, but I think the balance sheets think otherwise.

We can't actually tell the direction the company is moving in right now but the only thing we can do is to observe the frequency of sales of their current BTC over the next quarters, because it seems something is brewing deep down than meets the ordinary eyes.

How about if we just take all that of their bragging in holding for long term as common as the unreliable speculations as we and other professional analysts tends to predict the price of bitcoin with the fact that the market doesn't result to our assumptions?
I don't think we should take any corporative or individuals investors speculations that serious come to talk about being disappointed over their decisions on how they spends, buys and sells they bitcoin.
Although it seems too sudden of the Strategy selling their bitcoins after their usually and recently news that they're not thinking to sell at the nearest yet but holding ahead of a distance future.

The essence of them investing in bitcoin isn't to attain the crown of relevancy before the public but for store of values. According to some user's, bitcoin price had been boring since the third quarter which similar reasons could be why they've to sell and diversify to other assets they see that's CURRENTLY doing better than bitcoin.
Let's not forget the name "STRATEGY". Lol. They probably mean better plans for themselves and not bitcoin market entirely. Don't underestimate Michael Saylor entrepreneurship.