Strategy sells $216M in bitcoin as Grayscale sees durable bottom forming

Strategy's $216 million bitcoin sale — its largest ever — may help the asset find a durable bottom by removing forced-selling overhang, Grayscale Research said.

Strategy sold 3,588 bitcoin for $216 million last week to fund preferred stock dividends, the company disclosed Monday in an SEC filing.

"The rebound in STRC suggests investors are responding positively to this decision," Zach Pandl, head of research at Grayscale, said. "Strategy's actions should restore market confidence in its financing structure and may help bitcoin find a more durable bottom."

The sale, executed at an average price of about $60,000 per coin, boosted Strategy's dollar reserves to $2.55 billion — enough to cover roughly 17 months of dividend payments on its preferred securities. The company now holds 843,775 bitcoin acquired for about $63.69 billion, or an average cost of $75,476 per coin. Bitcoin initially dropped 2.4% on the news to near $61,900 before recovering above $64,000 later Monday. STRC, Strategy's yield-bearing preferred stock, reclaimed $90 for the first time in three weeks.

The sale marks a strategic shift for the largest corporate bitcoin holder, which had pledged never to sell until a 32-coin disposal in late May. With $1.76 billion in annual dividend obligations and limited access to equity markets at current prices, Strategy's bitcoin stack has become a funding source rather than a buy-only reserve. Andri Fauzan Adziima, research lead at Bitrue Research Institute, said the move "reduces forced-selling risks, rebuilds confidence in their structure and paves the way for a more durable bottom as other buyers step in."

The sale dwarfs Strategy's first disposal in late May, when it sold 32 bitcoin for about $2.5 million — its first sale since 2022. That earlier move triggered a 24% plunge in MSTR stock and an 18% drop in the iShares Bitcoin Trust ETF.

Strategy's preferred securities — STRF, STRE, STRK, STRD and STRC — carry annual dividend rates ranging from 8% to 12%, with total annual obligations estimated at $1.5 billion by Grayscale's Pandl. None of the instruments is backed by the company's bitcoin holdings; each holds only a claim on residual assets.

The company's software business does not generate enough cash to cover the dividends, forcing Strategy to choose between raising fresh capital and selling coins. The July disposal signals that equity-market conditions tightened during the quarter, making bitcoin sales the more viable option.

Bitcoin traded at $63,120 as of 14:30 UTC, up 0.06% on the day but still 17% below its average cost basis for Strategy. The Grayscale analysis suggests the market is pricing in reduced tail risk from further forced sales, though the precedent of using bitcoin as a funding source introduces a new dynamic for supply pressure.

This article is for informational purposes only and does not constitute investment advice.