Strategy (formerly MicroStrategy), the standard-bearer of the “DAT treasury model” and the largest corporate Bitcoin buyer, sold 32 BTC at an average price of $77,135 last week, netting $2.5 million. This marks the company’s first Bitcoin sale since the crypto winter of 2022, effectively ending its years-long buy-and-hold-only myth.
Bitcoin reacted swiftly, breaking below $71,000 to trade around $70,560 at press time. Crypto-related stocks on US equities also stumbled: Bullish lost 7.99%, DeFi Development shed 7.97%, Circle dropped 7.11%, Strategy itself fell 5.85%, and Upexi declined 5.04%, reflecting immediate negative sentiment.
Although shocking, this is not Strategy’s first-ever Bitcoin sale. In December 2022, amid the FTX-triggered bear market, the firm sold 704 BTC at $16,776, only to repurchase 810 BTC two days later at $16,845. The current sale, however, is aimed at covering dividend obligations of its fixed-income product, STRC, underscoring liquidity pressures.
STRC is a flagship digital credit instrument from Strategy. After repurchasing $1.5 billion in convertible debt last month, the company’s cash reserves shrank to about $871 million, enough to cover only roughly six months of its estimated $1.7 billion annual preferred dividends. STRC shares once dipped to $97.11. Adding to the strain, Strategy’s Q1 earnings posted a net loss of $12.54 billion, nearly entirely from a $14.46 billion unrealized loss on its Bitcoin holdings.
In its Q1 report, Strategy had warned that if convertible notes were not converted, it might need to sell Bitcoin or common stock to meet obligations. The sale of 32 BTC realizes that risk. At the end of Q1, the firm held 818,334 BTC with a total cost basis of $61.81 billion and an average purchase price of $75,537. Following the recent sale, its holdings stand at 843,706 BTC (after adjusting for other activities), with an average cost of $75,699 and a floating loss of $2.932 billion. Just last month, amid a market rebound, the position had been in the green by $8.2 billion.
Michael Saylor’s mixed messaging added to the confusion. On May 28, he published an article urging investors to “HODL” (hold on for dear life) amid depressed prices, yet earlier he had stated that “even if we sell 1 BTC, we would buy 10 to 20 times more.” The “sell to buy later” narrative fails to soothe markets. Strategy still holds over $60 billion in Bitcoin, but its paper losses widen.
In parallel, a prediction-market drama unfolded on Polymarket. The contract “Did Strategy sell BTC before May 31?” saw probabilities swing from 8% to 80% as the deadline approached, but ultimately resolved to “No” because the company never issued official selling announcement. It illustrates that prediction markets trade on rule-determined outcomes, not on underling truths.
Criticism mounted. Gold advocate Peter Schiff called the sale a signal that Strategy is transitioning from a top buyer to a seller and questioned future demand. Billionaire Mark Cuban disclosed he had sold most of his Bitcoin, citing fading faith in the “digital gold” narrative. JPMorgan noted a rise in “debasement trades” where investors exit both gold and Bitcoin.
With Bitcoin under continued pressure, the market clings to hope for political tailwinds. As the Trump administration shifts stance, the crypto sector looks for renewed policy support to stem the bleeding. Yet Strategy’s sale adds another layer of doubt at a fragile time, testing the very foundation of the institutional hoarding myth.