Strategy sold 1,690 Bitcoin worth nearly $109 million on Monday, marking its second sale this month and the fourth since late June, according to fortune.com. The company used the proceeds to repurchase one of its preferred-stock products instead of expanding its Bitcoin holdings. This sale follows a seven-week hiatus in Bitcoin purchases by Strategy.
The company’s shares initially dropped 1.5% at market open but quickly recovered to $100 per share. Bitcoin’s price briefly dipped 1% to around $64,700 before rebounding, per CoinGecko data cited by fortune.com. Strategy’s executive chairman, Michael Saylor, began accumulating Bitcoin on the balance sheet of his cybersecurity firm in 2020, growing holdings to about $54 billion, roughly 4% of the total Bitcoin supply.
Strategy’s recent sales mark a significant shift from its long-standing approach of accumulating Bitcoin. Since announcing in late June that it could sell up to $1.25 billion in Bitcoin to bolster cash reserves, the company has sold the cryptocurrency four times. The change in strategy comes amid declines in both Bitcoin’s price and Strategy’s share value, including a major crash on October 10 that wiped out over $19 billion in value.
Strategy’s next financial disclosures will reveal how these Bitcoin sales impact its balance sheet and cash reserves. The company’s total Bitcoin holdings remain substantial despite the recent sell-offs, maintaining its position as one of the largest institutional holders of the cryptocurrency.