The Nasdaq-listed firm liquidated Bitcoin to fund preferred stock dividends, deviating from its long-held accumulation strategy.
MicroStrategy sold 32 Bitcoin for approximately $2.5 million last week, marking its first sale of the cryptocurrency since 2022. The move was aimed at funding distributions on its yield-bearing preferred stock, STRC, and led to a more than 6.5% drop in MSTR shares before a partial recovery.
The company holds around 843,706 BTC, valued at over $60 billion, with an average cost basis of $75,701 per coin. Its dividend reserve has declined to roughly $900 million from an initial $1.44 billion. Bitcoin prices fell about 3% to $71,467 following the disclosure.
CEO Michael Saylor framed the sale as a balance-sheet optimization to improve Bitcoin-per-share metrics and manage tax liabilities on STRC. The transaction remains negligible relative to the firm’s total holdings but signals a shift in strategy.