Strategy’s Bitcoin liquidations may end soon as its preferred stock rebounds to $95, close to CEO Saylor’s $100 buyback threshold.
MicroStrategy has sold Bitcoin at around $64,000 per coin to fund preferred stock dividends, incurring a 15% loss on its $75,000 average cost. The sales were part of a shift in strategy to prioritize debt obligations over Bitcoin accumulation.
The company’s preferred stock has rallied 35% from its June low to $95, approaching CEO Michael Saylor’s $100 target for resuming Bitcoin purchases. MicroStrategy rebranded its model as a Digital Credit Framework, using Bitcoin as collateral rather than a long-term hold.
The change reflects a broader pivot from a Bitcoin treasury focus to managing debt and preferred-stock obligations. Analysts suggest the selling spree may be nearing its end as the stock nears Saylor’s threshold.