Strategy has performed its first major Bitcoin sale.
According to a recent form filed with the Securities and Exchange Commission (SEC), Michael Saylor’s firm sold a total of 3,588 BTC for roughly $216 million.
The proceeds will fund dividend distributions on the company’s preferred stock.
As of today, it continues to hold a staggering 843,775 BTC in its cryptocurrency reserves and $2.55 billion in its fiat USD reserves.
Furthermore, the company clarified in its filings that it did not sell any shares under its at-the-market offering program, nor did it purchase any shares under its share repurchase programs.
The price of Bitcoin (BTC) has slipped below $62,000 following the sale.
The shares of the company have also plunged by more than 4% in pre-market trading following the announcement.
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As reported by U.Today, the company disclosed a minor sale of 32 BTC for approximately $2.5 million.
The small transaction marked a psychological turning point for market observers.
The company then authorized more than $3 billion in potential Bitcoin-related sales in late June.
An acclaimed move
Zach Pandl, a head of research at Galaxy Digital, argued that the Bitcoin sales by Strategy are a critical step needed to restore investor confidence in the company’s STRC variable-rate preferred stock and its overall capital structure.
“I am encouraged to see they executed some sales last week. Further reduces short-term tail risks for Bitcoin. I would expect STRC to continue to trade well,” he said.
The STRC-related crisis became the key source of bearishness among crypto investors and analysts.
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