In an initiation note, Benchmark said the company has "one of the most differentiated capital structures in the bitcoin treasury sector."

Bitcoin tumbled to $72,000 Monday as news of the BTC treasury firm's about-face on its "never sell" stance broke.

The 8-K filing Monday says proceeds from the May 26-31 sale, executed at an average price of $77,135 a coin, will fund distributions on Strategy's preferred stock.

Strategy broke its long-standing HODL streak, selling bitcoin for the first time in years.