The average selling price this time is approximately 1.9% higher than the holding cost, and the company's current overall holding profit margin has significantly narrowed.

Written by: Bu Shuqing

Source: Wall Street Journal

The world's largest corporate Bitcoin holder, Strategy, has broken its "buy and never sell" tradition, revealing for the first time that it sold Bitcoin to pay dividends on preferred shares. The average selling price exceeded the holding cost but was below the current market price, attracting market attention.

According to an 8-K filing submitted on Monday, Strategy sold 32 Bitcoins at a net average price of $77,135 each between May 26 and 31, totaling approximately $2.5 million. The footnote in the document indicates that the proceeds from this sale will be specifically used to pay the company's preferred stock dividends, marking the first formally disclosed Bitcoin disposal operation by Strategy.

After the news was released, MSTR saw a pre-market drop of over 5%, and Bitcoin fell below $72,000.

As of May 31, Strategy still held 843,706 Bitcoins with an average acquisition cost of $75,699. The average selling price was about 1.9% higher than the holding cost, but according to CoinDesk data, Bitcoin's trading price had fallen below $72,000 on Monday, indicating that the company's overall holding profit margin has significantly narrowed.

First Sale: Small Scale Disposal, Clear Motivation

This sale is relatively limited in scale compared to its holding size—32 Bitcoins account for only about 0.004% of Strategy's total holding of over 840,000 Bitcoins. However, its significance lies in its nature rather than its scale: this marks the company's first time using Bitcoin sale proceeds for dividend payments, indicating a new operational model in the use of its Bitcoin treasury strategy.

The footnote in the 8-K filing explicitly states that the proceeds from the sale are dedicated to preferred stock dividends, showing that the company chose to monetize a small number of Bitcoins to fulfill its dividend obligations to preferred shareholders without needing to use other cash resources.

Discrepancy Between Selling Price and Current Market Price

The average selling price of $77,135 covers the average holding cost of $75,699 and yields a profit at the time of sale.

However, as of Monday, the market price of Bitcoin had fallen below $72,000, lower than Strategy's overall holding average price, meaning that measured at the current market price, the company's 843,706 Bitcoins are now in a state of paper loss.

This price trend provides a new reference dimension for investors assessing Strategy's Bitcoin strategy and raises market concerns over whether its obligations for preferred stock dividend payments can continue to be met by monetizing Bitcoin.