Strategy Unloads $105M Worth of BTC and MSTR Shares
Strategy, a publicly traded company that invests heavily in Bitcoin, has made significant sales of its BTC holdings and MSTR shares. The company disclosed in an SEC filing that it sold 1,638 BTC between July 27 and August 2 at an average price of $63,957 per coin. The proceeds from the sale were used to fund preferred stock dividend payments and repurchases of STRC preferred shares.
The sale also included the disposal of 3,011,361 MSTR shares for $290.6 million. Of these proceeds, $250 million was added to Strategy's USD reserve, which now stands at $4 billion. The company also repurchased some of its own stock using a portion of the funds.
Strategy's Bitcoin holdings have declined from 1,540 BTC to 842,138 BTC since the sale. However, this position is still worth around $52.6 billion, purchased at an average price of $75,419 per coin for a total cost of $63.5 billion. The company currently holds roughly $10.9 billion in unrealized losses on these assets.
Michael Saylor, Strategy's CEO, posted a Bitcoin tracker chart to X with the caption 'Bitcoin Drive engaged' over the weekend. This move has historically preceded announcements of new Bitcoin purchases by the company. However, the recent capital allocation shift towards cash building and preferred stock management suggests that this may not be the case this time.
MSTR shares currently trade 3.3% below their 20-day SMA, 17.6% below their 50-day SMA, and 41.2% below their 200-day SMA, indicating a bearish trend in the long term. The death cross formed in October continues to frame any bounce as a counter-trend move until price can reclaim those higher moving averages.