Michael Saylor's Strategy has sold 32 bitcoins, marking its first sale since 2022 and breaking its "never sell" pledge. This move comes as Bitcoin hits a four-month low, impacting three investor groups: Bitcoin holders, leveraged equity traders, and preferred shareholders. Strategy's stock has plummeted 70% from last year's peak, and its preferred stock has fallen below $100 par value.
The company faces increasing pressure to maintain its 11.5% annualized dividend amid a weakening market. Analysts warn that raising the dividend yield could add a $1.7 billion burden, while maintaining it might lead to further price declines. Strategy plans to vote on changing the dividend payment frequency to twice a month to stabilize prices. Despite these challenges, StoneX suggests the sale shows Strategy's ability to meet obligations without significantly reducing its Bitcoin holdings.
Strategy's Bitcoin Sale Pressures Investors Amid Market Decline
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