Two Bitcoin-focused companies took separate steps this week to address tightening liquidity, highlighting the growing financial strain on miners and corporate treasuries. Sphere 3D, a publicly traded Bitcoin miner, filed a prospectus that could dilute existing shareholders by up to 50.9% through an amended at-the-market (ATM) equity offering. At the same time, Strategy — the company formerly known as MicroStrategy — sold 1,638 BTC for roughly $104.7 million, marking its largest Bitcoin disposal to date and ending a five-week accumulation pause.
Sphere 3D disclosed the potential share sale in a July 31 SEC filing. The company may issue up to 4,382,978 new shares at an assumed price of $2.35 each, raising basic shares outstanding from 8,619,150 to 13,002,128. The move would generate approximately $9.9 million in net proceeds after commissions and expenses, according to the filing. The ATM program is authorization only — there is no obligation to sell — but the capacity itself signals deep cash needs. Sphere 3D held just $3.15 million in cash and 26.2 BTC (valued at $1.79 million) as of March 31, and its 2025 audit contained a going-concern warning. The company already sold 2,172,789 shares under a previous ATM for $5.13 million. Its policy also allows selling mined Bitcoin for working capital, further tying dilution to digital-asset liquidity.
Strategy’s situation is different in scale but similar in theme. The company reduced its Bitcoin holdings to 842,138 BTC after the $104.7 million sale. Proceeds were used to fund distributions on preferred shares and repurchase its perpetual preferred stock, STRC. The sale — equivalent to less than 0.2% of total holdings — came after five consecutive weeks without purchases and a $250 million increase in dollar reserves to $4 billion. Chairman Michael Saylor emphasized that his personal “never sell” mantra does not extend to the publicly traded firm. “Strategy is a public company, not my wallet,” he posted. TD Cowen analysts viewed the move as consistent with management’s goal of restoring STRC toward its par value.
Together, the actions illustrate a shift: Bitcoin’s role on corporate balance sheets is becoming more operational. For miners like Sphere 3D, the digital asset serves as a collateral reserve that can be monetized when cash runs low. For treasury-centric firms like Strategy, it is an instrument to manage complex capital structures — including preferred dividends and debt repurchases — even if that means occasional sales. While neither event signals a wholesale unwind of Bitcoin positions, they reveal that liquidity needs are now forcing previously accumulated BTC into circulation, a trend that could weigh on market sentiment if more companies follow suit.
