MicroStrategy Sells $216 Million in Bitcoin to Fund Dividends and Boost Dollar Reserves
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- MicroStrategy, the largest corporate Bitcoin holder, sold 3,588 BTC for $216 million to fund dividends and increase its U.S. dollar reserve.
- The sale, part of a new capital management framework, trimmed its holdings to 843,775 BTC, with Bitcoin trading below its cost basis.
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MicroStrategy, a major Bitcoin holder, has sold a portion of its holdings to manage its finances, including funding dividends and increasing its U.S. dollar reserves. This move comes as Bitcoin's price trades below the company's cost basis.
Strategy, the largest corporate holder of Bitcoin, sold 3,588 BTC over the past week for around $216 million, according to a Monday disclosure.
The proceeds funded dividends on its preferred shares and topped up its U.S. dollar reserve, which stood at $2.55 billion as of July 5.
The Michael Saylor-led firm, long known for buying and holding Bitcoin, has trimmed its stack to 843,775 BTC, carried at a cost basis of $63.7 billion, or about $75,476 per coin.
With Bitcoin trading near $60,000, well below that, Strategy booked an $8.32 billion loss on its digital assets for the second quarter, almost all of it unrealized.
Strategy said a BTC Monetization Program it unveiled on June 29, which lets it raise up to $1.25 billion by selling Bitcoin, remained fully available as of July 5.
Although the company’s latest liquidation represented 0.42% of its overall stockpile, the sale yielded far more in proceeds than its sale of 32 Bitcoin for $2.5 million, which triggered the company’s worst weekly performance since 2022 and raised questions about whether market participations could look to the firm to buoy Bitcoin’s market.
Shares of Strategy fell 2% in pre-market trading to 98.88, according to Yahoo! Finance.
The downturn put Strategy on track to snap a streak of five straight daily gains, exacerbating a 26% tumble in the company’s stock price over the past month.
Those losses stood in contrast with Bitcoin’s 3.7% increase over the same period.
On Monday, the digital asset’s price steadied to around $62,900 before U.S. markets opened, after jumping as high as $63,700 over the weekend, according to CoinGecko data.
Strategy’s latest move follows its adoption of a capital management framework last week.
The firm signaled that it could sell $1.25 billion worth of Bitcoin to shore up cash for dividend payments under the new plan, while authorizing $2 billion in stock buybacks.
At the same time, Strategy hiked the annual for Stretch (STRC) to 12% and expanded its so-called USD Reserve to $2.55 billion.
The company said then that it would have enough resources to cover 26 months of dividend costs if it also tapped its Bitcoin stash.
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MicroStrategy's stock may continue to face downward pressure in the short term.
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Offene Fragen
- Will further Bitcoin sales be necessary?
- How will this impact Bitcoin's market stability?
- What is the long-term strategy for MicroStrategy's Bitcoin holdings?
