Strategy Sells 1,638 Bitcoins; Saylor: I Haven't Sold a Single Satoshi

Strategy, the largest corporate Bitcoin treasurer, has once again sold part of its reserves. Last week, the company sold 1,638 BTC at an average price of $63,957, raising approximately $104.7 million in liquidity.

Following this sale, Strategy's Bitcoin holdings have decreased to 842,138 units. The cost basis of these reserves is reported to be around $63.5 billion, with an average purchase price of nearly $75,419 per Bitcoin.

Despite the sale of the company's Bitcoins, Michael Saylor emphasized that he has not sold any of his personal Bitcoins and that the financial decisions of Strategy should not be conflated with his personal portfolio.

Why Did Strategy Sell Bitcoin?
The revenue from the sale is being used to pay preferred dividends, buy back STRC shares, and bolster the company's dollar reserves. At the same time, Strategy spent about $81.2 million to buy back 912,143 preferred STRC shares.

In recent months, the company has faced a decline in the prices of its common and preferred shares, along with pressure from paying dividends on these securities. Therefore, the limited sale of Bitcoin is considered part of the company's liquidity management plan, rather than a complete abandonment of its long-term strategy of holding BTC.

Strategy had previously announced that it might liquidate some of its Bitcoins to secure dollar reserves, pay preferred dividends, service debts, or buy back shares. In a plan introduced in late June, the company considered selling up to $1.25 billion worth of Bitcoin to meet these needs.

Previously, we had extensively analyzed the conditions under which Strategy might sell its Bitcoins and the implications of such actions.

Has the Motto "Never Sell Your Bitcoin" Failed?
The answer to this question relates to the distinction between Michael Saylor as a personal investor and Strategy as a publicly traded company. Saylor states that the advice "never sell your Bitcoin" comes from one saver to another. He emphasizes that he has not sold even a single Satoshi of his personal holdings.

Unlike a personal investor, Strategy must pay preferred dividends, service debts, and meet other financial obligations. The company's board is also responsible for managing capital and liquidity based on shareholder interests. As a result, the sale of Bitcoin by the company does not necessarily contradict Saylor's personal stance; however, it indicates that the policy of "buy only and never sell" is no longer an accurate description of Strategy's treasury behavior.

This change becomes more significant compared to Saylor's previous statements. He had previously emphasized in response to critics that Strategy had not sold Bitcoin even during the crisis of 2022. You can read the details of that position in Michael Saylor's response to critics of Strategy's Bitcoin model.

According to data from SoSoValue cited by Odaily, global public companies, excluding mining firms, recorded approximately $101 million in net Bitcoin sales during the week ending August 3. This figure represents an increase of over 528% compared to the previous week.

The strategy of selling 1,638 BTC was the main factor behind the negative weekly flow. Metaplanet from Japan also did not purchase any new Bitcoin for the third consecutive week. However, several smaller companies continued to buy:

• Strive purchased about 20 BTC worth $1.26 million.
• OrangeBTC added approximately 30 BTC valued at $1.99 million to its treasury.
• The Smarter Web Company bought around 11.89 BTC.
• The French company Capital B added another Bitcoin to its reserves.
• BitMine also reported the purchase of one Bitcoin, increasing its holdings to 208 BTC.

Based on this data, the public companies surveyed hold a total of approximately 1,138,643 BTC, valued at nearly $72.4 billion at the time of data release. This amount constitutes about 5.7% of the circulating Bitcoin.

To understand the structure and risks of these companies, read the article "What Are Crypto Treasury Companies and How Do They Work?".

BitMine has increased its Ethereum reserves to about 5.8 million ETH.

While the strategy has liquidated part of its Bitcoin reserves, BitMine continues to increase its Ethereum holdings.

The company purchased another 10,399 ETH in one week, bringing its total to approximately 5,797,813 ETH. BitMine's Ethereum reserves now account for nearly 4.8% of the total ETH supply, making it the largest public Ethereum treasurer.

As of July 26, BitMine held 5,787,414 ETH, of which 4,917,189 units were staked. The company reported the purchase of 9,946 ETH in the same week; thus, the increase in reserves to nearly 5.8 million ETH continues the weekly accumulation plan.

According to on-chain data released, BitMine subsequently entered 150,100 ETH into staking contracts. As a result, the total staked ETH of the company has reached approximately 5.07 million units, or nearly 87% of its total reserves.

With an approximate annual rate of 2.66%, this amount could generate about 134,800 ETH in staking income per year, a figure worth nearly $250 million at current prices. However, the staking yield rate is not fixed and varies with network conditions.

BitMine's official announcement on July 27 indicated that the company staked 4,917,189 ETH at an annual rate of about 2.65% and estimates its annual staking operation income to be close to $254 million.

A more comprehensive analysis of this model can be found in the upcoming article "Digital Treasury with Ethereum; A Step Beyond Bitcoin".

Solmate and Kraken Venture into Solana Staking

The public company Solmate Infrastructure has also announced a partnership with Kraken Institutional for the custody and staking of its Solana assets.

Under this partnership, the company's SOL assets can be held in Kraken's custodial infrastructure, while Solmate continues to earn network rewards through the operation of Solana's validator infrastructure and staking.

This model shows that altcoin treasury companies are not solely reliant on asset price increases and are also working to generate income from staking, validation, and other native network activities. Kraken provides institutional staking services and validation operations for over 35 proof-of-stake assets.

Selling 1,638 Bitcoins is not considered a large supply compared to the daily trading volume of the market. Its main significance lies in the change of behavior of the largest corporate Bitcoin treasurer.

The strategy has now shown that it can use Bitcoin as a liquidity source if needed. This decision may alleviate concerns about dividend payments and the company's debts, but on the other hand, investors must also consider the possibility of future sales in the valuation of MSTR shares and its preferred stock.

The company still holds over 842,000 BTC and remains the largest corporate holder of Bitcoin. Therefore, the recent sale cannot be seen as a strategy exit from Bitcoin; however, the period during which the company's treasury only moved in one direction has come to an end.

Frequently Asked Questions

Has Michael Saylor Sold His Bitcoins?

No. Michael Saylor states that he has not sold any of his personal Bitcoins. The sale of 1,638 BTC was related to the treasury of the strategy company.

Why Did the Strategy Company Sell Bitcoin?

The company needed liquidity to cover preferred dividends, buy back STRC shares, and strengthen its dollar reserves.

How Many Bitcoins Does the Strategy Company Have Now?

After the recent sale, the company's balance has reached 842,138 BTC.

How Many Ethereum Does BitMine Hold?

According to the latest published data, BitMine's reserves have reached approximately 5.8 million ETH, with nearly 87% of it staked.

This article is for informational and educational purposes only and does not constitute a recommendation to buy or sell digital assets or company stocks.