Strategy CEO Phong Le said the company’s 32 BTC sale was a process test, not a sign of dividend stress. The Strategy Bitcoin sale drew investor attention after an SEC filing linked proceeds to preferred stock distributions and raised questions.
Le discussed the matter in an interview on June 13. He stated that the small sale was a trial of conducting a Bitcoin transaction within the company.
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Strategy Bitcoin Sale Raises Dividend Questions
The sale of Strategy Bitcoin took place between May 26 and May 31 for a total of 32 BTC. The company has raised approximately $2.5 million, according to the SEC filing.
The average sale price was $77,135 per BTC. Proceeds were expected to be used for preferred stock distributions, raising questions about future sales, the filing said.
Le refuted the opinion that Strategy had to sell Bitcoin to pay dividends. The company still has other channels like equity and preferred stock,” he said.
The Strategy Bitcoin sale also produced tax losses that could offset taxation in the future, he said. The aim was to test execution and reduce market shock around future sales.
Le said Strategy would use financial math when choosing between selling Bitcoin and issuing stock. He stated the company will not make Bitcoin sales an ideological matter.
If selling Bitcoin would be beneficial to Bitcoin per share to its holders, Strategy may select such an option. It could go the stock route if it offers a better result.
Le also mentioned a potential forced sale. A realistic case might be $3.5 billion of preferred obligations that will come due in 2028, he said.
That pressure could matter if Bitcoin fell sharply and Strategy’s share price stayed weak. Le said that was an “edge case” and not a “base plan.”
Strategy Expands Bitcoin Holdings After Small Sale
He stated that Strategy could refinance the obligations or turn them into equity. That indicates the Strategy Bitcoin sale isn’t showing a clear funding path.
The company later purchased 1,550 BTC for approximately $101.3 million from June 1 to June 7. That purchase was made after the sale of 32 BTC in the week after.
The buy boosted Strategy’s overall holdings to 845,256 BTC. Its U.S. dollar cash reserve also rose to $1 billion afterward.
The Strategy Bitcoin sale debate comes as Michael Saylor explained how investors should measure the company’s Bitcoin exposure. He separated Bitcoin Per Share from Common Equity Bitcoin Exposure BPS.
“Bitcoin per share represents the growth of the common equity,” Saylor said. He noted that CEBE BPS monitors Bitcoin exposure following debt and preferred stock claims.
He called CEBE BPS a conservative risk measurement. Because the Strategy model now incorporates debt, preferred stock, and dividend cost.
If senior claims grow, the difference between the two measures can increase. The Strategy Bitcoin sale placed more attention on how the company funds obligations while protecting common shareholders.
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