MicroStrategy Diverts $300M into Cash, Slashes Bitcoin Buys, Hits Two-Year Stock Lows
MSTR•MicroStrategy has rerouted $300M of a $335.5M common stock sale into its cash reserve, lifting it to $1.4B and cutting Bitcoin purchases to 520 BTC recently after CryptoQuant’s June 23 warning arrived two weeks too late. Shares and its $100 par preferred stock are heading toward two-year lows.
1. Late CryptoQuant Warning
CryptoQuant urged MicroStrategy to halt Bitcoin purchases and rebuild cash reserves, but the recommendation was issued on June 23, nearly two weeks after the company had already begun shifting away from Bitcoin acquisitions in early June.
2. Shift to Cash Reserve
In the week of June 22, MicroStrategy raised $335.5M through a common stock offering and allocated $300M to its US dollar reserve, lifting the buffer for dividend obligations to roughly $1.4B, a 38% increase from earlier levels.
3. Bitcoin Purchase Slowdown
Bitcoin purchases slowed markedly, with only 520 BTC acquired for approximately $35M in the latest week, compared with 1,587 BTC a week earlier, as the firm prioritizes cash liquidity over digital asset accumulation.
4. Stock Performance Pressure
Shares are on pace for their lowest closing level in two years, while the variable-rate preferred stock slipped to a record low of $82.50, about 17.5% below its $100 par value, narrowing dividend coverage to around 14 months.
