Strategy considers sale of up to $5 billion in Bitcoin

Strategy, the world’s largest Bitcoin whale, is discussing a plan to sell up to $5 billion in Bitcoin. This is evident from the quarterly figures the company presents on Thursday. The announcement is putting downward pressure on the Bitcoin price, which has dropped to its lowest level in two weeks.

Bitcoin is available at OKX and Bybit.

In short:

• Strategy is considering selling up to $5 billion in Bitcoin for three purposes: dollar reserves, dividends and share buybacks.
• The company has already sold $218.4 million worth of Bitcoin this year to pay preferred dividends.
• The Bitcoin price falls to a two-week low and currently stands at $63K, a decline of 1.3% in 24 hours.

Three reasons for a possible Bitcoin sale

During the Q2 results presentation, CEO Phong Le explains why the company wants to sell Bitcoin. According to him, there are three concrete goals: building a dollar reserve of up to $1.25 billion, paying annual preferred dividends and interest expenses worth approximately $1.76 billion, and buying back common shares and digital credit securities for up to $2 billion.

Strategy thereby indicates that it does not plan to make new Bitcoin purchases in the coming period. The company had already stopped fully committing to Bitcoin. This year, Strategy has so far already sold $218.4 million worth of Bitcoin, specifically to be able to pay the dividends on preferred shares.

Price drops to two-week low

The market responds immediately to the news. The Bitcoin price fell early Friday morning to its lowest point in two weeks, thereby performing worse than gold. At the time of writing, Bitcoin stands at $63.034, which amounts to a loss of 1.3% over the past 24 hours.

For comparison: Investors.com reports that Strategy owned a total of 843,775 Bitcoin on 26 July, purchased at an average price of $75.476 each. This means the company is currently significantly below its average purchase price. Strategy had already suffered a loss of $8.22 billion in the second quarter due to fluctuations in the value of Bitcoin.