MicroStrategy Sells 32 BTC, Shares Plunge Nearly 9% as Price Falls
MSTR•MicroStrategy disclosed the sale of 32 Bitcoin, its first reported divestment since December 2022, driving the stock down nearly 9% during mid-morning trading. Bitcoin tumbled to $67,000, prompting critic Peter Schiff to warn that MSTR's perpetual preferred shares could enter a 'death spiral' if yield sustainability is questioned.
1. Bitcoin Dips Below $70,000
Bitcoin slid to $67,000 for the first time since April, reigniting skepticism over its ability to hold key levels. Peter Schiff highlighted that the Nasdaq, gold and silver have significantly outperformed Bitcoin since late 2021, arguing investors missed stronger gains elsewhere.
2. MicroStrategy Sells 32 Bitcoin
MicroStrategy executed its first Bitcoin sale since December 2022, offloading 32 coins during recent trading. The announcement coincided with a nearly 9% drop in the company's share price, reflecting investor concern over its crypto exposure strategy.
3. Preferred Shares 'Death Spiral' Warning
Schiff cautioned that the perpetual 'Stretch' preferred shares could enter a 'death spiral' if investors question the company’s ability to maintain the current yield. He suggested that Executive Chairman Michael Saylor might need to raise the coupon to support the preferred share price.
