MicroStrategy Moves $30.3M Bitcoin as Cash Falls to $871M Under Dividend Strain
MSTR•MicroStrategy transferred 411.48 BTC (≈$30.3 million) to Coinbase Prime on May 29, sparking selling speculation despite holding 843,738 BTC (~$65 billion) treasury. Arca CIO warns MSTR’s $15.5 billion preferred‐stock structure and recent $1.5 billion convertible‐note buyback leave only $871 million cash to meet 11.5% dividend obligations.
1. Bitcoin Transfer to Coinbase
On May 29, MicroStrategy shifted 411.48 BTC (about $30.3 million) from its treasury to Coinbase Prime, triggering trader debate over potential Bitcoin sales despite a remaining balance of 843,738 BTC valued near $65 billion.
2. Preferred-Stock and Convertible Note Buyback
The firm’s preferred-stock structure comprises roughly $15.5 billion across four series. In early May, it repurchased $1.5 billion face value of zero-coupon convertible notes due 2029 for approximately $1.38 billion, securing an 8% discount.
3. Dividend Obligations and Financial Risks
The convertible buyback cut cash reserves to $871 million, raising concerns about covering the recently raised 11.5% preferred dividend. Investors are weighing whether future Bitcoin sales will be needed to satisfy these obligations.
