MicroStrategy sells 1,638 Bitcoin for preferred share obligations

MicroStrategy sold 1,638 BTC worth $104.73 million to fund dividend obligations and repurchases of its preferred stock, STRC. The company also divested $290 million in MSTR shares, with roughly $250 million of proceeds directed toward building its USD reserve to $4 billion. The move followed a similar $216 million Bitcoin sale, after which markets recovered slightly.

MSTR stock recorded a 1.7% relief bounce on August 3rd, closing at $94.86 despite the sales activity. The stock remains below key moving averages and has consolidated beneath its 2024 range of $100–$180. Analysts from Barclays and Cantor Fitzgerald project potential upside to $240, implying gains of 100–240% from current levels if the stock reclaims its year-to-date range and reaches the 200-day moving average at $160.

The sales represent only $320 million of MicroStrategy's $5 billion monetization target—roughly 6.5% of the planned programme. CEO Phong Le has maintained that the company's amplified Bitcoin exposure remains intact despite sales activity, noting that MicroStrategy has outperformed Bitcoin in every four-year holding period since adopting the asset in August 2020.

Criticism has emerged from long-time Bitcoin sceptic Peter Schiff, who characterised the continued share dilution and Bitcoin sales as burdensome to both MSTR and Bitcoin itself, particularly given management's focus on bringing the STRC preferred stock to a $100 target.