MicroStrategy ends one-way Bitcoin buys with 32 BTC sale, unveils $1.25B plan
MSTR•Matt Hougan says MicroStrategy’s run as Bitcoin’s top buyer is likely over after it sold 32 BTC for $2.5 million between May 26–31. On June 29, the company launched a Digital Credit Capital Framework allowing up to $1.25 billion in Bitcoin sales for reserves, dividends and share or debt buybacks.
1. End of One-Way Bitcoin Demand
For years MicroStrategy funded Bitcoin purchases solely through ATM equity and STRC preferred stock offerings, accumulating thousands of BTC weekly. Bitwise CIO Matt Hougan interprets the recent shift in capital strategy and inaugural sales as signaling an end to the company’s one-way demand, indicating a move toward balanced market participation.
2. First BTC Sale and STRC Decline
Between May 26 and May 31 MicroStrategy sold 32 BTC for approximately $2.5 million, marking its first sale since December 2022. This transaction coincided with STRC preferred stock falling to a record low of 71.2 and Bitcoin dipping below $60,000, pressuring one of the firm’s primary financing instruments.
3. Digital Credit Capital Framework Details
On June 29 MicroStrategy unveiled a Digital Credit Capital Framework authorizing up to $1.25 billion in periodic Bitcoin sales to fund its US dollar reserve, cover dividend and interest obligations when more favorable than issuing new shares, and support share or debt repurchases. Management retains discretion to buy or sell BTC based on market conditions rather than facing forced liquidations.
