Strategy Sells Bitcoin For $216 Million For Dividend Funding

• Strategy sold a total of 3,588 Bitcoin for around $216 million over the past week, reducing its holdings to 843,775 BTC.
• Critics called out the company and Saylor for selling BTC way below their average purchase cost of $75,476 per BTC

Strategy (MSTR), a Bitcoin (BTC) development company and enterprise business solutions provider, has greenlit the sale of some of its BTC holdings in line with its new Digital Credit Capital Framework. Meanwhile, critics piled on Michael Saylor, Executive Chairman of Strategy, for their failure to sell during the bull market.

Strategy Sell Bitcoin

Strategy reported in a Form 8-K and through an announcement from Saylor that it sold a total of 3,588 BTC on two occasions over the past week. The company acquired approximately $216 million from the sale, reducing its digital asset holdings to 843,775 BTC.

Crunching the numbers, Strategy sold 1,363 BTC on June 29 for $80.8 million at an average of $59,256 per BTC. On July 1, it sold another $2,225 BTC for $135.2 million at $60,773 per BTC.

ADVERTISEMENTStrategy executed the transactions to replenish its Digital Credit Dividends. It aligns with the company’s BTC monetization program under the new Digital Credit Capital Framework, which authorizes it to sell Bitcoin at its discretion to replenish cash reserves, pay dividends, settle interest on preferred shares, and fund share repurchases.

The company disclosed that it used the proceeds of the recent sales to increase its US dollar reserves to $2.55 billion. To date, it has annual dividends of $1.763 billion payable to shareholders, meaning its cash on hand can cover up to 17.4 months of dividend payments at prevailing conditions.

Bitcoin’s circulating supply currently sits at more than 20.05 million, and Strategy controls 4.2% of the float.

ADVERTISEMENT## Critics Pile Up on Strategy’s BTC Sales

Pundits chided Saylor’s post about Strategy’s latest move. Peter Schiff, Chairman of SchiffGold, criticized the company for its poor sales execution, considering that the average price it received for its bitcoin offerings was roughly $60K, while the average purchase price in its portfolio was $75,476 per BTC.

Additionally, the pseudonymous Doctor Profit reminded Saylor of the time when he advised him to sell at $120,000 per BTC, only to receive a laughing emoji response. Even crypto influencer Ansem, reportedly Zion Thomas in real life and recently at the center of a Pump.fun token controversy, sarcastically encouraged Saylor to sell all their holdings so the market can move on normally without them.

On the other hand, others mostly reminded Saylor of how he duped the crypto community into “never selling” their BTC and even advised them to “sell a kidney” just to buy more of the coin.

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