MicroStrategy Launches $1.25B Bitcoin Sale Framework as STRC Preferred Stock Hits 71.2 Low
MSTR•MicroStrategy sold 32 BTC for roughly $2.5 million between May 26 and May 31, its first Bitcoin sale since December 2022, signalling a shift from its one-way accumulation strategy. Its STRC preferred stock hit a record low of 71.2 last Friday and the new Digital Credit Capital Framework permits up to $1.25 billion in periodic Bitcoin sales to fund reserves, dividends, and repurchases.
1. MicroStrategy Shifts From Accumulation
For years MicroStrategy purchased thousands of BTC weekly via ATM equity and preferred offerings, but between May 26 and May 31 it sold 32 BTC for roughly $2.5 million, its first sale since December 2022, signalling a strategic pivot.
2. STRC Preferred Stock Collapse
The slide of MicroStrategy’s perpetual preferred STRC shares to a record low of 71.2 last Friday, driven by Bitcoin’s drop below $60,000, has strained its primary crypto financing mechanism and increased pressure on treasury funding.
3. New Digital Credit Capital Framework
On June 29 the company unveiled a framework allowing periodic Bitcoin sales up to $1.25 billion to bolster its US dollar reserves, cover dividend and interest obligations when advantageous, and fund share or debt repurchases, giving it flexibility to buy or sell based on market conditions.
