Strategy Sells 32 Bitcoin This Week, Breaking No-Sell Pledge; All Three Investor Classes Face Pressure

According to Bloomberg, Strategy, the Michael Saylor-led investment vehicle, sold 32 bitcoin this week on June 5, marking its first sale since late 2022 and breaking its no-sell commitment. The move pressures three investor classes: bitcoin holders face potential further liquidations, leveraged equity traders saw STRC stock decline roughly 70% from its annual high, and preferred shareholders watched STRC preferred shares drop below their $100 par value.

Strategy's annual dividend rate stands at 11.5%. To maintain it, the company would add $1.7 billion in liabilities; keeping rates unchanged risks further price declines. Strategy will vote Monday on switching to bi-monthly dividend payments to stabilize pricing. Arca's chief investment officer warned that protecting all stakeholders is nearly impossible unless bitcoin rebounds before cash reserves deplete.