Key Takeaways:
Strategy sold 3,588 Bitcoin for about $216 million last week, reducing its holdings to 843,775 BTC, an SEC filing showed Monday.
"These sales were executed under our recently approved Bitcoin monetization program to support preferred stock distributions and maintain our USD reserve," Andrew Kang, Strategy's newly appointed principal accounting officer, said in the filing.
The company executed two separate transactions — 1,363 BTC at an average price of $59,256 and 2,225 BTC at $60,773 — between June 29 and July 5. Strategy's USD reserve stood at $2.55 billion as of July 5, representing about 17 months of dividend and interest coverage. The full $1.25 billion capacity under its Bitcoin Monetization Program remains available.
The sales mark a strategic pivot for the largest corporate Bitcoin holder, which had long maintained a "never sell" posture. Strategy now holds 843,775 BTC acquired for approximately $63.69 billion, or an average price of $75,476 per Bitcoin — meaning the entire position is underwater at current prices.
A $8.32 Billion Impairment
Strategy separately reported an $8.32 billion digital asset impairment loss for the second quarter, reflecting Bitcoin's market value falling below the company's acquisition cost at quarter-end. The impairment is largely unrealized and stems from accounting rules requiring companies to mark digital asset holdings to market when prices decline.
The company also named Andrew Kang as principal accounting officer following Jeanine Montgomery's retirement. Strategy confirmed it made no share sales under its at-the-market equity program and no share repurchases during the reporting period.
Market Reaction
Bitcoin traded at $61,900 as of 12:00 UTC, down about 2% from $62,900 before the announcement, giving back gains from a weekend rally. MSTR shares fell more than 7% in early trading, leading decliners in the Nasdaq 100, while Coinbase Global and MARA Holdings each dropped more than 3%.
The accelerated pace of sales — 3,588 BTC last week versus just 32 BTC sold in May — signals a fundamental shift in Strategy's capital management approach. CEO Phong Le has described the new Digital Credit Capital Framework as moving from primarily issuing capital to actively managing the capital structure through both issuance and repurchases depending on market conditions.
Strategy's Bitcoin holdings, worth approximately $52 billion at current market prices, remain the largest corporate treasury position in the industry. The company said it will stop issuing common equity to buy Bitcoin when its shares trade near the value of its holdings, a policy designed to protect shareholder value.
This article is for informational purposes only and does not constitute investment advice.
