Strategy disclosed it sold 32 Bitcoin between May 26 and May 31 at an average price of $77,135, raising about $2.5 million. This marks the company's first Bitcoin sale since December 2022, a shift from CEO Michael Saylor's longstanding 'never sell' mantra. The proceeds will fund distributions on the STRC preferred stock, which has created significant dividend obligations. Strategy holds roughly $13.5 billion in preferred equity with an annual dividend burden of $1.2-1.4 billion, against only $871 million in cash-less than nine months of coverage.
The market did not like the news. Strategy shares fell 6% Monday, while Bitcoin dropped below $70,000 for the first time in two months. The 32 coins sold represent only 0.0038% of Strategy's total position, but the concern is whether Saylor will continue selling.
Meanwhile, a $50 million Polymarket contract asking 'Will Strategy sell Bitcoin in May 2026?' is heading toward a NO resolution, despite the sale occurring in May, because the disclosure filing came on June 1-highlighting a dispute over resolution criteria.
Other markets saw Bitcoin fall 4% to $69,300, while NEAR jumped 17%, WLD gained 12%, and RENDER rose 10%. Telegram founder Pavel Durov announced the rebranding of Toncoin to GRAM, its original name, sending TON up 6%. Charles Schwab is targeting 2027 for its spot crypto trading product for wealth advisors. Bitcoin ETFs saw $484 million in net outflows Monday.