Strategy’s recent Bitcoin sale of 3,588 BTC for approximately $216 million may not have reduced the capacity of its $1.25 billion BTC Monetization Program, according to VanEck’s Matthew Sigel. Sigel stated that the program’s cap applies only to sales funding the company’s USD Reserve, while direct dividend payments could sit outside that limit. The company’s Form 8-K filing showed the full program capacity remained available as of July 5. Following the sales, Strategy holds 843,775 BTC and $2.55 billion in USD reserves.
Strategy’s recent Bitcoin sale has raised questions about its $1.25 billion BTC Monetization Program. VanEck’s Matthew Sigel said the sale may not have reduced that capacity.
Sigel, VanEck’s head of digital assets research, pointed to the program’s stated use. He stated that the cap applies to Bitcoin sales used to fund the USD Reserve.
In his view, sales used for direct dividend payments may sit outside that limit. The filing showed that Strategy had sold 2,225 BTC from July 1 to July 5.
That sale resulted in approximately $135.2 million, at an average price of $60,773 per Bitcoin. Strategy had also sold 1,363 BTC between June 29 and June 30, raising about $80.8 million.
The two disposals totaled 3,588 BTC for approximately $216 million. Strategy said proceeds were used for preferred stock distributions.
The BTC monetization program could produce additional revenues amounting to $1.25 billion. The company noted that these revenues will support the USD Reserve.
Strategy did not conduct any stock sale via its at-the-market offering program. It also did not buy back any shares under its buyback program.
Michael Saylor announced the sale of 3,588 BTC to fund dividends on its Digital Credit securities. As of July 5, Strategy holds 843,775 BTC in its reserves.
The company also disclosed $2.55 billion in USD reserves. These reserves provide funds to pay preferred stock dividends and interest on debt.
Strategy also reported a digital asset loss of $8.32 billion for the period ending June 30. This included unrealized losses of $8.31 billion and realized losses of $0.9 million.
