Strategy’s preferred-stock-funded sale masked bigger treasury reductions from Marathon, Core Scientific, and others
Bitcoin traders pinned the digital asset’s sharp May decline on Michael Saylor’s Strategy and its disclosure of a 32 BTC sale between May 26 and May 31, but the narrative misses a larger unraveling of corporate Bitcoin treasuries that month.
Strategy filed a Form 8-K on June 1 disclosing the sale, which generated $2.5 million in proceeds at an average net price of $77,135 per BTC. The sale funded preferred-stock distributions, a fixed obligation tied to Strategy’s debt structure. At the time of the sale, Strategy held 843,706 BTC, meaning the 32 BTC represented 0.0038% of its total holdings and just 0.014% of Bitcoin’s $17.45 billion daily volume on May 31.
Yet five other publicly traded companies reduced Bitcoin holdings by a combined 7,359 BTC in May, dwarfing Strategy’s exit. Marathon Digital (MARA) shed 3,386 BTC, though the reduction traced to a March disclosure tied to convertible-note repurchases rather than a fresh May decision. Core Scientific cut 1,990 BTC, Sequans reduced holdings by 1,481 BTC to redeem debt from its failed treasury strategy, and Prenetics exited 502 BTC as part of an authorized full withdrawal to redirect capital toward its IM8 health business.
The combined value of those seven firms’ reductions reached $541 million at May 31’s $73,579 Bitcoin price. Strategy’s sale was 230 times smaller than the other firms’ combined reduction.
Bitcoin fell below $71,500 after Strategy’s disclosure, but multiple headwinds compressed the market that week. Iran-related geopolitical tensions and over $90 million in BTC-tracked futures liquidations pressured price action. US-traded spot Bitcoin ETFs experienced roughly $4.4 billion in outflows over 13 recorded trading days through June 3, the largest single driver of downward momentum during the window.
Strategy built its reputation since 2020 as a permanent Bitcoin accumulator under Saylor’s leadership, attracting investors who viewed the company as a proxy for corporate Bitcoin conviction. The 32 BTC sale, while small relative to holdings and daily volume, signaled the first material exit from that accumulation posture.
Public treasury companies added or disclosed 51,000 BTC before May reductions and 43,500 BTC net after reductions, indicating that despite May’s visible selling, corporate Bitcoin acquisition remained the dominant trend. Standard Chartered analyst Geoffrey Kendrick maintained a $100,000 year-end 2026 Bitcoin price target even after the decline, suggesting institutional conviction persisted despite near-term selling pressure.
The May reductions exposed fractures in corporate Bitcoin strategy. Sequans’ exit marked a retreat from a failed treasury experiment. Prenetics’ full withdrawal redirected capital to core operations. Core Scientific’s reduction would not have appeared under BitcoinTreasuries’ previous methodology, highlighting how reporting gaps can distort market narratives. MARA’s larger cut was a financing-driven decision made months prior, not a fresh vote of no confidence.
Strategy’s 32 BTC sale, by contrast, was a routine obligation discharge. The market’s focus on that transaction rather than the broader treasury unwind reflects how concentrated holdings and founder visibility can dominate price attribution, even when the underlying selling pressure originates elsewhere.
