MicroStrategy Sells 32 BTC After STRC Stock Plunges, Unveils $1.25B Bitcoin Sales Plan
MSTR•MicroStrategy sold 32 BTC for $2.5M between May 26–31, its first sale since December 2022 after STRC preferred shares collapsed to 71.2. Its Digital Credit Capital Framework permits up to $1.25B of Bitcoin sales to bolster dollar reserves, meet dividend and interest commitments, and fund buybacks.
1. Shift to Bitcoin Sales
In late May, MicroStrategy executed its first Bitcoin sale since December 2022, offloading 32 BTC for approximately $2.5 million. This move marked a departure from its prior practice of one-way accumulation funded by equity and preferred stock offerings.
2. STRC Preferred Stock Collapse
MicroStrategy’s STRC perpetual preferred shares plunged to a record low of 71.2, undermining a key financing vehicle. The decline occurred in tandem with Bitcoin’s drop below $60,000, eroding the company’s cost-effective capital source.
3. Digital Credit Capital Framework
On June 29, MicroStrategy introduced a framework authorizing up to $1.25 billion in periodic Bitcoin sales to bolster US dollar reserves, cover dividends and interest, and repurchase shares or debt. The policy imposes limits on annual sales and retains the option to repurchase BTC during price rallies, reflecting a more flexible treasury strategy.
