MicroStrategy Offloads $105M in BTC at a Loss to Fund Stock Buyback

The firm sold 1,638 Bitcoin below its cost basis to repurchase preferred shares and boost cash reserves. MicroStrategy sold 1,638 BTC for $104.7 million last week, reducing its holdings to 842,138 coins. The sale occurred at an average price of $63,957, roughly $11,500 bel

The firm sold 1,638 Bitcoin below its cost basis to repurchase preferred shares and boost cash reserves.

MicroStrategy sold 1,638 BTC for $104.7 million last week, reducing its holdings to 842,138 coins. The sale occurred at an average price of $63,957, roughly $11,500 below its $75,419 cost basis, marking a loss on the transaction.

The company had not purchased Bitcoin since June 22, its longest pause ever. Proceeds were used to fund $52.4 million in preferred stock dividends and $52.3 million for an $81 million buyback of its STRC preferred shares, part of a $1 billion program.

Cash reserves now stand at $4 billion, which the company describes as 2.3 years of runway. STRC has traded below its $100 par value since mid-May, prompting the sale of Bitcoin at a discount to support share repurchases.

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