MicroStrategy sold 32 BTC for roughly $2.5 million to cover its Series C preferred dividends, equal to 0.0038% of its 843,706-coin holdings. The disclosure spurred a near-10% share drop and contributed to an 8.6% Bitcoin slump, highlighting the weight of even minimal sales on investor confidence.
MicroStrategy executed its first Bitcoin sale in 41 months, offloading 32 BTC between May 26 and May 31 to raise approximately $2.5 million. Proceeds were earmarked exclusively for payment of Series C preferred stock dividends (STRC), reversing its long-standing stance of retaining all digital assets.
The minimal sale representing just 0.0038% of its 843,706-coin reserve triggered a 9.95% plunge in MicroStrategy shares and an 8.6% drop in Bitcoin’s price. Investors responded sharply, underscoring the fragility of market sentiment tied to the company’s Bitcoin strategy.
Raising cash for preferred dividends signals potential pressure on STRC obligations if digital-asset holdings are tapped again. The outsized market response raises questions about future liquidity moves and long-term confidence in dividend coverage strategies.
