The company confirmed that it sold an undisclosed number of bitcoins to fund a $2.50 per share dividend payment due to a class of preferred stock. This is the first such sale since 2022, when the company trimmed a small position for tax purposes. For a stock that has long traded on the premise that Strategy would hoard Bitcoin indefinitely, the transaction shattered a key psychological anchor. MSTR closed at $122.50, down 6.6% on the session, after touching its lowest point since January. Trading volume surged to 17.8 million shares, nearly double the 30-day average, as institutional and retail investors recalibrated their thesis.
⚠️ Analyst view, unconfirmed: "This is the first crack in the fortress. Any future sales could further erode the premium MSTR commands over its net asset value," wrote one sell-side analyst who requested anonymity.
How the Sale Worked
To cover the dividend, Strategy sold an unspecified amount of Bitcoin—likely a small fraction of its holdings—and also raised $335.5 million through an at-the-market (ATM) equity offering of 2.9 million shares. The company's cash reserves stood at roughly $300 million prior to the ATM, according to its most recent 10-Q. Proceeds from the stock sale, combined with existing cash, are earmarked for "general corporate purposes," which may include future Bitcoin purchases, debt repayment, or further dividend obligations. The preferred dividend structure, issued last year to unlock capital, contains a mandatory cash pay feature that forced the liquidation.