Strategy disclosed the sale of 32 Bitcoin in late May, marking its first such transaction to cover preferred stock payments. The move rattled investors and contributed to a sharp drop in the company's shares and Bitcoin prices.
Strategy sold the 32 Bitcoin between May 26 and May 31 for $2.5 million at an average price of $77,135. The company still held 843,706 Bitcoin as of May 31 after the transaction, which represented a tiny fraction of its holdings. The disclosure on June 1 triggered a market reaction on June 5. Strategy shares fell to a four-month low while Bitcoin dropped below $60,000. The preferred stock STRC also came under pressure. Other firms reduced larger Bitcoin holdings in May, including MARA with 3,386 Bitcoin and Core Scientific with 1,990 Bitcoin. US spot Bitcoin ETFs saw $4.4 billion in outflows over the period through June 3. Michael Saylor stated that Bitcoin needs deeper connections to banks, credit and capital markets to support disciplined expansion amid shifting demand.
