By Vicky Ge Huang
Strategy, the bitcoin-hoarding firm founded by Michael Saylor, said it sold 3,588 bitcoin last week to fund dividends on its preferred stock.
The sale, which raised about $216 million, comes after the company unveiled a turnaround plan aimed at shoring up investor confidence.
After the recent sale, Strategy still holds 843,775 bitcoin worth about $52 billion based on current prices. It logged a $8.32 billion loss on its digital assets for the second quarter, as bitcoin fell below the average price at which it bought its holdings. Almost all of it was a paper loss.
Under its turnaround plan, Strategy said that it might sell bitcoin to raise up to $1.25 billion to help cover the dividend payments on its preferred stock, the interest on outstanding debt and fund its share-repurchase program.
Strategy, the pioneer of the corporate bitcoin treasury model, has faced mounting pressure as the slow-motion crash of cryptocurrencies stretches into its ninth month. The company's common and preferred stock sold off sharply in recent weeks, while bitcoin dipped below $60,000 before reversing losses.
Shares of Strategy slipped. Ahead of the disclosure, they had been climbing premarket.
This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).