MicroStrategy Faces $11.2B Bitcoin Paper Loss, Sells 32 BTC to Fund Dividends
MSTR•MicroStrategy holds 843,706 BTC at an average cost of $75,699, leaving the position $11.2 billion underwater as Bitcoin trades near $62,560. Its sale of 32 coins for $2.5 million to fund preferred dividends has cut cash reserves from $2.25 billion to $900 million, raising odds of further Bitcoin sales.
1. Bitcoin Position and Paper Loss
MicroStrategy’s 843,706 BTC holding, acquired at an average cost basis of $75,699 per coin, is now valued at roughly $52.6 billion as Bitcoin trades near $62,560, resulting in an $11.2 billion unrealized loss on its balance sheet.
2. Dividend Sale and Liquidity Drain
Between May 26 and May 31, MicroStrategy sold 32 BTC at an average price of $77,135 for approximately $2.5 million to cover distributions on its perpetual preferred stock, shrinking its cash reserves from $2.25 billion at year-start to about $900 million.
3. STRC Pressure and Potential Forced Sales
Its STRC perpetual preferred shares, carrying an 11.5% dividend yield, are trading around $94.60, below par, which increases dividend obligations and could force additional Bitcoin sales if trading remains under $100.
4. Impact on Crypto Treasury Stocks
MicroStrategy’s sell-off contributed to broader pressure on Bitcoin treasury companies, whose combined market value has plunged by $62 billion from early October peaks as digital-asset treasuries face liquidity strains and potential asset sales.
