MSTR Slides About 5% After Michael Saylor's Strategy Sells 32 Bitcoin, First Sale in Four Years
Strategy (MSTR), the company led by Bitcoin advocate Michael Saylor, disclosed it sold 32 BTC for about $2.5 million between May 26 and May 31, according to recent filings with the U.S. Securities and Exchange Commission (SEC). The sale is intended to help fund dividend obligations tied to the company's STRC preferred stock, marking the first operational Bitcoin sale aimed at corporate liquidity in four years.
Investors reacted quickly. MSTR shares fell about 5.4% in Monday's June 1 premarket session, giving back part of last week's rally. The stock finished Friday, May 29 up roughly 7% and was moving toward $160, but slipped back to the key $150 area in premarket trading. Over the past month, MSTR is down more than 10%.
While the 32 BTC sold represents only a tiny fraction of the company's holdings, the move has heightened scrutiny because Strategy's shares also dipped below their 200-week moving average, a level some traders view as an important long-term support. Technical watchers say a failure to reclaim that threshold could leave the stock vulnerable, with the next notable support seen around $135.
Strategy said it still holds 843,706 BTC, valued at approximately $60.8 billion at current market prices. Separately, the company raised about $128 million by selling 801,994 Class A common shares through its at-the-market (ATM) program over the same period, and reported no sales under its preferred-stock ATM facilities. Strategy also disclosed it maintains a $900 million cash reserve.
The company reaffirmed an 11.50% annual dividend rate on its STRC preferred shares and announced cash dividend payouts across all preferred stock series.
Some market observers argued the market response may be overdone. CNBC's Jim Cramer noted the sale could prompt investors to reassess Strategy's role in supporting Bitcoin's narrative, though he cautioned against jumping to manipulation claims. Investor Brett Kessler described the move as routine balance-sheet management rather than a loss of conviction, pointing to the company's preferred dividend obligations and prior comments that small BTC sales could be preferable to issuing additional equity.
Kessler also highlighted that Strategy sold roughly $2.5 million of Bitcoin to cover cash-flow needs while purchasing about $43 million of BTC only days earlier.
Bitcoin prices were also under pressure following the news, slipping below $70,000; some traders said continued weakness could open the door to further downside.
