The firm sold Bitcoin at an average $64,262, below its $75,385 cost basis, to fund preferred stock buybacks and boost cash reserves.
MicroStrategy (MSTR) sold 1,690 Bitcoin for $108.6 million and 6.59 million shares for $653.1 million last week. The Bitcoin sales, at an average price of $64,262, were below the company’s $75,385 average acquisition cost, locking in losses on the transactions.
The firm’s Bitcoin holdings now total 840,447 BTC, valued at $63.36 billion. Proceeds from the sales were used to repurchase $108.6 million of preferred stock and add $650 million to cash reserves, lifting the balance to $4.65 billion. MicroStrategy retains $785.2 million under its preferred stock repurchase program.
MSTR shares fell 75% over the past year to $100.01, while Bitcoin traded at $64,800 on August 10. The company cited dividend obligations on its 12% yielding preferred stock as a key driver for the sales.