Vaneck: Saylor's Strategy Sold $135 Million in Bitcoin Without Tapping Its $1.25 Billion Monetization Program

Vaneck Head of Digital Assets Research Matthew Sigel says the roughly $135 million in bitcoin Strategy sold last week did not draw down the company’s $1.25 billion BTC Monetization Program, leaving that capacity fully intact.

Strategy Inc. (Nasdaq: MSTR) sold 3,588 BTC for around $216 million between June 29 and July 5, with proceeds going toward preferred stock distributions and replenishing its USD reserve to $2.55 billion. The sales trimmed Strategy’s holdings from 847,363 BTC to roughly 843,775 BTC.

Sigel clarified that the BTC Monetization Program, which permits selling up to $1.25 billion for capital management, was not used. He described Strategy as essentially a hedge fund that trades its own capital stack and bitcoin, suggesting it should be valued at a low price-to-earnings ratio.

The company faces about $1.5 billion in annual dividend obligations from preferred stock instruments, which its software business cannot cover alone. Analysts are divided on the shift: JPMorgan sees “avoidable two-way risk” in codified selling, while Grayscale argues the sales reduce tail risk by pre-funding 17 months of dividends.

Executive chairman Michael Saylor, who previously pledged never to sell bitcoin, abandoned that stance this year. The company retains the full $1.25 billion in authorized selling capacity as dry powder.

Source: https://news.bitcoin.com/vaneck-strategy-bitcoin-sale-monetization-program/