Strategy (MSTR) Sells $5 Billion in Bitcoin (BTC)?...Saylor Refutes, "Not True"

▲ Michael Saylor, Bitcoin (BTC) / AI Generated Image

Reports that Strategy (MSTR) approved a $5 billion Bitcoin sale have been confirmed as untrue. Michael Saylor refuted, stating that existing capital management plans were being spread as if they were new decisions.

According to Bitcoin.com on August 1 (local time), Strategy Chairman Michael Saylor denied reports that the company had newly approved the sale of up to $5 billion worth of Bitcoin (BTC). Saylor stated that the content was “recycled information.” He explained that the relevant plan was already announced on June 29 as part of its digital credit capital framework.

The program allows for the sale of Bitcoin for specific corporate operating purposes. However, it does not mandate actual sales. Strategy has not additionally approved new Bitcoin selling authority. Saylor emphasized that the program's announcement date was 31 days before the release of Q2 earnings. This drew a line against claims that the selling plan was devised after a quarterly loss.

Documents filed with the U.S. Securities and Exchange Commission (SEC) on July 6 contained details of the existing program's operations. Strategy sold 3,588 BTC for $216 million from June 29 to July 5. Previously, 32 BTC were also disposed of to support preferred stock dividend payments. It was the first Bitcoin sale since 2022.

Strategy subsequently raised $263.5 million by issuing common stock. Instead of purchasing additional Bitcoin, it increased its cash holdings and liquidity. Saylor stated that Strategy has never adopted a policy of never selling Bitcoin. He added, “We expect to remain net buyers in the long term.”

The existing framework has an unused limit of $1.25 billion that can be utilized to strengthen reserves. Proceeds from sales can be used for dividends, interest, stock repurchases, taxes, fees, and other purposes. The program has no set termination date. Management can modify or suspend the program based on market conditions and liquidity needs. Sales exceeding defined purposes or limits require additional approval from the board of directors.

[Article Key Summary]

-Michael Saylor denied reports that Strategy had newly approved a $5 billion Bitcoin sale.

-Strategy sold 3,588 BTC for $216 million from June 29 to July 5 under an existing program.

-Saylor stated that Bitcoin sales are not mandatory and that the company expects to remain net buyers in the long term.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*