Strategy dumps yet more Bitcoin, latest $109 million sell-off comes amid a seven-week buying hiatus

Strategy has sold another batch of Bitcoin, this time amounting to $109 million, following a seven-week pause in acquisitions. The cryptocurrency giant announced the transaction on Monday and plans to use the earnings to purchase shares in a preferred-stock product instead of augmenting its holdings. This comes after the company's last Bitcoin purchase seven weeks prior, according to the firm's records.

Following the news, Strategy's shares dipped by 1.5% at the opening bell but swiftly recovered to $100. Bitcoin's value saw a brief dip of 1% before rebounding to $64,700, according to CoinGecko. This marks the second Bitcoin sale by Strategy this month, with the company parting with roughly $105 million worth of the digital asset on August 3rd.

Since early June when MicroStrategy CEO Michael Saylor hinted at the potential sale of up to $1.25 billion worth of Bitcoin to bolster cash reserves, the company has sold off the asset four times. This shift in strategy contrasts with MicroStrategy's long-standing approach of accumulating Bitcoin rather than selling it. The company now holds roughly $54 billion worth of Bitcoin, representing about 4% of the total Bitcoin supply, according to their own data.

Strategy's pivot in recent months can be attributed to the decline in both the price of Bitcoin and the company's own shares. Since the October 10th market crash, which resulted in losses exceeding $19 billion in leveraged crypto positions, Bitcoin has plummeted nearly 43%, while MSTR shares have lost almost 70%. As Bitcoin and the company's shares have nosedived, Strategy has sought to bolster its dollar reserves to demonstrate its ability to meet financial obligations amidst market volatility.

CEO Phong Le commended the latest Bitcoin sale, stating that the company's USD Reserve and Duration are now at record highs, with a 5x increase over a two-and-a-half-month period. Strategy is not the only entity grappling with the repercussions of the broader crypto downturn. Across the industry, a series of companies that had been amassing cryptocurrencies in the hopes of generating stock rallies have faced significant losses.

Solana-focused Solmate has witnessed its value dwindle nearly to nothing, leaving investors with substantial paper losses. Similarly, Cantor Fitzgerald's BSTR Bitcoin vehicle has struggled to maintain momentum for its SPAC deal amidst dwindling investor interest. This news first appeared on Fortune.com.