Bitcoin dropped 3.5% in the 24 hours through July 31, touching its lowest level in three weeks around $62,911 as the market digested a new disclosure from its largest corporate holder. Strategy, the company formerly known as MicroStrategy, signaled it may sell up to $5 billion of its bitcoin treasury, according to a Forbes report published that morning.
The move marks a sharp departure from the "never sell" posture that underpinned Strategy's valuation premium for years. In early July, the company sold 3,588 BTC for roughly $216 million in its largest disposal since December 2022, according to SEC filings disclosed July 6. Those coins were sold in two tranches: 1,363 BTC at an average $59,256 between June 29-30, and 2,225 BTC at an average $60,773 between July 1-5. The blended price of about $60,197 sat well below Strategy's average acquisition cost of $75,476, locking in an estimated $55 million realized loss.
Proceeds from the July sale were earmarked for quarterly dividends on Strategy's STRC perpetual preferred shares and to replenish a dollar reserve dedicated to those payouts. The company's board had previously authorized a "Digital Credit Capital Framework" allowing up to $1.25 billion in bitcoin sales for liquidity management. As of July 5, Strategy still held 843,775 BTC acquired for a cumulative $63.69 billion, plus roughly $2.55 billion in cash.