Strategy Sells Bitcoin to Fund Preferred Stock Dividends
- Strategy sold 32 BTC for $2.5 million between May 26 and May 31, at an average price of $77,135 per coin.
- The sale was conducted to fund preferred stock dividends due by June 30, totaling recurring obligations.
- Despite the sale, Strategy holds a substantial reserve of 843,706 BTC, acquired at a cost basis of $63.87 billion.
- A USD reserve of $900 million was established to cover preferred stock dividends and debt interest.
- The company also generated $128.3 million from selling MSTR common stock during the same period.
The sale of BTC by Strategy marks a shift from its usual accumulation strategy, as proceeds are directed towards meeting dividend obligations on preferred stock series payable by June end.
This strategic move highlights the company’s approach to managing recurring costs while maintaining significant Bitcoin reserves and liquidity through its USD reserve and equity sales.(Source)
