MicroStrategy Sells $105M Bitcoin to Support Preferred Stock

MicroStrategy sold 1,638 Bitcoin for $104.7 million last week, reducing its holdings to 842,138 coins from 843,775 held since early July. The sale occurred at an average price of $63,957 per coin, representing a loss of roughly $11,500 against the company's stated cost basis of $75,419. It marks the longest pause in purchasing since June 22.

Proceeds from the Bitcoin sale and a concurrent $291 million stock sale were allocated to preferred stock dividends and a buyback program. Some $52.4 million went toward dividends on preferred stock, while $52.3 million supported a second buyback of STRC preferred shares in two weeks as part of a $1 billion program. The remainder bolstered cash reserves to $4 billion.

The moves underscore strains in the capital structure. STRC preferred shares have traded below their $100 par value since mid-May, forcing the company to sell Bitcoin at a loss and dilute common shareholders through equity sales to sustain the preferred stock. The article notes this dynamic represents a substantial shift from earlier positioning. Chief executive Michael Saylor, who previously advocated never selling Bitcoin, clarified yesterday that his messaging applied to individual savers, not to the public company's capital management, which has disclosed potential to buy or sell Bitcoin since 2020.

Bitcoin absorbed the week's negative developments—including a $100 million-plus Coldcard security incident and MicroStrategy's own sales—with price movement remaining broadly flat, suggesting reduced market sensitivity to adverse news.