Michael Saylor’s Strategy sold 3,588 BTC▲$62,630.00 for about $216 million, turning the company’s Bitcoin treasury into a source of cash.
Strategy sold more than 3,500 BTC in one week, unloading 1,363 BTC for $80.8 million and then another 2,225 BTC for $135.2 million, bringing total sales to 3,588 BTC, or about $216 million.
In a regulatory filing on Monday, July 6, Strategy said it used the cash to pay preferred shareholders and refill the dollar reserve tapped for those payments.
Over the years, Strategy had only reiterated through its regulatory filings that the firm was a serial BTC buyer. But now, Strategy reveals that Bitcoin is being used as the liquidity provider for the capital structure built on the treasury.
As of July 5, Strategy still held 843,775 BTC, with an aggregate purchase price of $63.7 billion and an average purchase price of $75,400 per BTC.
Strategy Bitcoin Sales Follow New Monetization Plan
The sale follows Strategy’s June 29 announcement of Bitcoin Monetization Program, under which the company said it may sell BTC from time to time, including to generate up to $1.25 billion in additional proceeds for its dollar reserve.
As Bitcoin Foundation reported earlier, JPMorgan had warned that Strategy’s new sales policy creates “two-way” risk for the market. The bank’s main concern is that while Strategy can still buy Bitcoin, it can also sell BTC to fund buybacks and the new filing gives that concern a real example.
Furthermore, Strategy said that it has incurred a net loss in crypto assets worth approximately $8.3 billion for the period ended on June 30, including the unrealized loss amounting to $8.3 billion, and the carrying cost of its Bitcoin exceeds the fair value.
Read more: Strategy’s Bitcoin Buying Machine May Be Losing Power, Bitwise Says
