Strategy Sells Largest Amount of Bitcoin Ever Amid Dividend Payment Strains

Michael Saylor's company, Strategy (NASDAQ:MSTR), has sold its largest amount of Bitcoin ever to cover dividend payments. The $216 million sale, equivalent to 3,588 coins, was made at a loss and is not a sign that Saylor has lost faith in the cryptocurrency. In fact, he has stated that he would sell to pay his bills, but not because he believes in its value.

The sale is too small to move the market on its own, making up less than 1% of daily Bitcoin trades. However, it's a significant development given Saylor's long-held position as one of Bitcoin's loudest maximalists, who has always said never to sell.

The company owes between $750 and $800 million annually in dividend payments on its preferred stock, which is separate from its normal shares. The sale was made necessary because Strategy's main way of paying these bills, through the STRC preferred stock, has slipped below the $100 mark and can no longer be used to raise new money.

The Bitcoin price has barely moved after the sale, rising in fact since it occurred. A move to $50,000 is still possible, but would come from bigger pressures such as renewed US-Iran conflict, hot inflation, a hawkish Fed, and heavy ETF outflows.