Breaking: Michael Saylor’s Strategy Sells 3,588 Bitcoin To Fund STRC Dividends
Highlights
- Strategy sold 3,588 BTC for $216 million last week.
- The company made this sale to fund dividends on its digital credit securities.
- The MSTR stock is down in premarket trading.
Michael Saylor’s Strategy has sold Bitcoin for the second time this year, after previously revealing it may do so to fund dividend payments. The MSTR stock is down in premarket trading amid the announcement of this sale, the largest the company has made to date.
Strategy Sells 3,588 Bitcoin For $216 Million
An SEC filing shows that the Bitcoin treasury company sold 3,588 BTC for $216 million between June 29 and July 5. The first sale occurred between June 29 and 30, when it sold 1,363 BTC for $80.8 million, while the second sale occurred between July 1 and 5, when it sold 2,225 BTC for $135.2 million.
Strategy now holds 843,775 BTC and $2.55 billion in its USD Reserves. This Bitcoin sale notably comes just after CoinGape reported that Strategy could sell up to $1.25 billion BTC as part of its digital credit framework.
The Bitcoin treasury stated that this sale was to fund dividends for its digital credit securities, which include the STRC stock. The STRC stock is currently trading below its $100 par value, with the company cooling off on its BTC acquisition amid this downtrend.
However, as CoinGape reported, the STRC stock has climbed today as Binance launched 24/7 trading for the preferred security. The STRC stock is currently trading at around $88 in premarket trading, up less than 1%, according to TradingView data.
Meanwhile, Strategy announced that it did not sell any shares under its at-the-market offering program between June 29 and July 5. It also did not purchase any shares under its share repurchase programs.
The MSTR stock is down as the Bitcoin treasury company did not sell or repurchase its common stock. The stock is currently trading at around $98, down almost 2% in premarket trading, according to TradingView data.
$8.32 Billion Loss On BTC Holdings
Strategy revealed in the SEC filing that it had a $8.32 billion loss on its Bitcoin holdings for the three months ended June 30. This includes an unrealized loss of $8.31 billion and a realized loss of $900 million.
As of June 30, the company had a carrying value of $49.67 billion on its BTC holdings. Meanwhile, the cost basis of the Bitcoin held by Strategy exceeded the fair value of its BTC holdings. As a result, the company will record a valuation allowance against its deferred tax benefit and deferred tax asset associated with the unrealized loss on its BTC holdings during the quarter ended June 30.
The Bitcoin price is also down amid Strategy’s announcement. The leading crypto is currently trading at around $61,700, down over 2% today, according to TradingView data.
For more information about crypto tax, please check out our page on Crypto Tax Accountants
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