Strategy shifts 411 BTC to Coinbase Prime amid cash squeeze

Strategy moved about 205.3 BTC and 206.2 BTC to a Coinbase Prime address on May 29, according to blockchain tracking firm Arkham Intelligence. The transfers have not been confirmed as sales.

On-chain analysis found the Bitcoin left two Strategy-linked wallets for intermediate addresses before arriving at a destination using a P2SH address that begins with “3”, instead of the company’s usual Native SegWit “bc1q” format. ForeDex Proof noted that pattern and address type are commonly associated with Coinbase Prime activity and over-the-counter transactions.

Strategy holds roughly 843,738 BTC, so the amounts moved represent a small share of the treasury. The transfers occurred the same week the company paused fresh Bitcoin purchases, began repurchasing convertible senior notes and told investors selling Bitcoin could be used as a financing option if needed.

The company repurchased nearly $1.5 billion in face value of 0% convertible senior notes due in 2029 for about $1.38 billion in cash. That repurchase reduced the dollar reserve that some investors had viewed as a buffer for preferred dividends and other obligations.

Glenn Cameron, global head of institutional at Onramp Bitcoin, reported the dollar reserve fell from $2.25 billion on Feb. 1 to $871 million on May 25. Cameron estimated Strategy’s annual cash obligations at about $1.66 billion, including roughly $1.23 billion in STRC preferred dividends calculated at an 11.5% rate. By that estimate, the remaining reserve covers about 6.3 months of annualized obligations.

STRC, Strategy’s variable-rate preferred instrument designed to trade near a $100 par value, has traded below par since mid-month. The preferred-stock issuance is part of a funding approach in which the company issues preferred shares, uses proceeds to buy Bitcoin and relies on investor demand to manage liabilities.

Crypto analyst Ragnar identified higher-cost lots bought in 2024–2026 as possible candidates for selective sales, citing purchases of 220 BTC at $123,561, 430 BTC at $119,666 and 6,220 BTC at $118,940.

Joao Wedson, chief executive of Alphractal, criticized the timing of Strategy’s accumulation, saying the company raised its average entry after aggressive buying in 2024–2026 rather than buying more during the 2022–2023 bear market.

Jeff Dorman, chief investment officer at Arca, outlined three options for the company: sell Bitcoin to fund preferred dividends, suspend dividend payments, or seek new capital. He said analysts have given the company roughly a four-month window to address funding pressures.

Company officials have not confirmed that the Coinbase Prime transfers were sales. Strategy has previously moved coins between custody wallets for internal management. The transfers, the convertible-note repurchase and the reduced dollar reserve are events investors and analysts are monitoring as STRC trading and cash coverage change.