The documents submitted by Strategy to the United States Securities and Exchange Commission show that the company has sold 3,588 bitcoin, with a turnover of approximately $216 million. The proceeds of the sale will be used to pay the company ' s preferred dividends, which is also a relatively large reduction in the company ' s share.
Sale proceeds for dividends
The company disclosed that the corresponding volume of sale was 3,588 bitcoin. The cash pool was approximately $216 million, as documented. The funds were not intended for new business investments, but rather to support the red-hot payments of corporate priority shares.
Prior to that, the market had noted that the company had sold 32 bitcoins for approximately $2.5 million. By contrast, the sale was significantly larger and also showed a clearer adjustment signal for its operations in the treasury of a bitcoin.
Still holding 843775 bitcoins
Company disclosures indicate that Strategy still holds 843,775 bitcoin and approximately $255.0 billion in cash reserves. The sale did not change its position as a big company listed as a bitcoin, based on the size of the hold.
However, in the context of the continued use of financing instruments such as preferential shares, the sale of a portion of bitcoin for dividends obligations also reflects the fact that companies are balancing encrypted asset reserves with capital structure arrangements.
Market interest follow-up reduction arrangements
Zach Pandl, Director of Galaxy Digital Research, stated that Strategy ' s implementation of a bitcoin sale helped to restore investors ' confidence in their STRC floating interest rate priority shares and in the overall capital structure. In his view, this move also reduced the short-term tail risk to Bitcoin.
Following this disclosure, the market focus shifted to whether the company would continue to meet its distribution or financing needs through the sale of bitcoin and whether such operations would affect its long-term treasury strategy for holding bitcoin.
Additional information:In the original version, bitcoin prices fell after the news had spread, but no specific drop was disclosed over the corresponding time period.