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Michael Saylor Explains Sale of 32 Bitcoin, Reaffirms Long-Term View

Strategy sold 32 Bitcoin to help fund dividend obligations, but Saylor says it does not change the long-term view on BTC. What does that mean for his strategy?

By Zenz van der Wielen
• 2 min read
Michael Saylor Explains Sale of 32 Bitcoin, Reaffirms Long-Term View

Key Takeaways

  • Strategy sold 32 Bitcoin between May 26 and May 31, worth about $2.5 million.
  • The proceeds will be used to fund dividend payments on the company’s preferred stock.
  • Michael Saylor says the sale does not change Strategy’s long-term view on Bitcoin.

Michael Saylor said during BTC Prague that his company Strategy recently sold 32 Bitcoin (BTC). Even though he has long told investors never to sell their Bitcoin, he stressed that this transaction does not change the company’s long-term view on Bitcoin.

Reason Behind the Bitcoin Sale

Strategy sold 32 BTC between May 26 and May 31, worth about $2.5 million, slightly above the cost basis of $75,699 per coin. The sale, the first since December 2022, was disclosed in a SEC filing on June 1. The proceeds will be used to fund dividend payments on the company’s preferred stock, a recurring obligation within Strategy’s capital structure.

With holdings of about 843,706 BTC, worth roughly $62 billion, this sale represents only a tiny slice of its total Bitcoin reserve. Strategy had also already paused new Bitcoin purchases, including ahead of earnings. That fits into a broader trend where demand from digital asset treasuries is cooling off; institutional demand for Bitcoin has actually dropped sharply in recent months.

Saylor Clarifies His Advice on Selling Bitcoin

During his talk in Prague, Saylor addressed the apparent contradiction between his earlier advice and the recent sale. He made it clear that his warning never to sell Bitcoin was mainly aimed at retail investors. For a company like Strategy, selling Bitcoin can sometimes be necessary to meet financial obligations, like paying dividends.

Saylor pointed out that it would not make sense for a company to rule out selling altogether, especially when liquidity needs require it. In his view, the size of the transaction shows there is no negative outlook on Bitcoin’s future.

Relevance for European Investors

For European investors, this situation can offer some insight into how major crypto companies manage their Bitcoin holdings in the context of financial obligations. It shows that even companies with a strong conviction in Bitcoin can still be flexible with their treasury management. That may matter when judging the stability and strategy of large Bitcoin holders in the market.

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