Strategy Sells $105M in Bitcoin to Support Its Own Preferred Stock

Strategy, a public company founded by Michael Saylor, has been selling its Bitcoin holdings to prop up its own preferred stock. According to an 8-K filing, Strategy sold 1,638 BTC for $104.7 million last week at an average price of $63,957. This is roughly $11,500 below the company's cost basis of $75,419.

This sale represents a significant loss for Strategy and its common shareholders, who are now diluted due to the company's efforts to prop up its preferred stock. The preferred stock has traded below its $100 par value since mid-May, which has weighed heavily on the company's structure.

Saylor himself has shifted his messaging from 'never sell' to acknowledging that he has indeed sold some of Strategy's Bitcoin holdings. He tweeted that he has never sold any of his own personal Bitcoin, but emphasized that Strategy is a public company with its own financial decisions and not simply a reflection of his personal views.