Strategy sells $263.5 million in MSTR shares, buys no bitcoin as USD reserve tops $3.2 billion

Bitcoin treasury company Strategy sold approximately $263.5 million worth of MSTR shares last week, according to an 8-K filing with the Securities and Exchange Commission on Monday.

Strategy has therefore retained its bitcoin holdings at 843,775 BTC — worth around $54.7 billion — bought at an average price of $75,476 per bitcoin for a total cost of around $63.7 billion, including fees and expenses, according to the company's co-founder and executive chairman, Michael Saylor.

Strategy's holdings are still equivalent to around 4% of bitcoin's 21 million supply cap, but carry around $9 billion of paper losses at current prices.

Expand Chart

'What's next?'

Strategy's larger cash reserves and improving institutional demand in bitcoin futures are "encouraging signs" for the bitcoin outlook, JPMorgan analysts said last week, despite spot bitcoin exchange-traded fund flows remaining volatile.

Expand Chart

CryptoQuant analysts also said Strategy's new capital management strategy addresses the company's liquidity concerns by rebuilding cash reserves and pausing bitcoin purchases. However, the firm said Strategy still needs a systematic framework for timing bitcoin purchases and a disciplined plan for selling bitcoin during the next bull market.

According to Bitcoin Treasuries data, 197 public companies have adopted some form of bitcoin acquisition model. Tether-backed Twenty One, Metaplanet, MARA, and Adam Back and Cantor Fitzgerald-backed Bitcoin Standard Treasury Company make up the rest of the top 5, with 43,514 BTC, 43,000 BTC, 36,303 BTC, and 30,021 BTC, respectively.

Expand Chart

Strategy's stock fell 4% overall last week, closing on Friday at $94.85, according to The Block's MSTR price page, down 38.6% year-to-date. Bitcoin rose around 0.5% during the same period.

Expand Chart