Strategy Inc. (MSTR) saw its stock tumble to multi-month lows after the company sold a portion of its Bitcoin holdings for the first time in over three years and issued $335.5 million in new shares to cover a dividend payment. The move shatters the firm's long-held "never sell" mantra and has rattled investors who viewed the company as a pure Bitcoin proxy.
Background: From Software Firm to Bitcoin Treasury
Since its first Bitcoin purchase in 2020, Strategy (formerly MicroStrategy) has accumulated over 205,000 BTC, worth roughly $53 billion at recent prices. The company financed these purchases through debt offerings and equity sales, building a reputation as the most aggressive corporate Bitcoin bull. Until this week, it had never sold a single satoshi since 2022, even during crypto winters. The dividend-induced sale marks a strategic pivot that threatens the core investment thesis: that MSTR shares are a leveraged proxy for Bitcoin, with management committed to perpetual accumulation.