MicroStrategy Shares Drop 9% to $136 as Bitcoin ETF Outflows Top $3 Billion
MSTR•MicroStrategy shares plunged 9% to $136.08, trading 70% below their 52-week high after Bitcoin slid under $67,000 and triggered over $3 billion in ETF outflows. A $1.5 billion convertible debt repurchase cut cash reserves to $871 million—covering six months of $1.7 billion in preferred dividends—raising share issuances to buy Bitcoin.
1. Stock Performance Plunge
On Tuesday, MicroStrategy shares fell 9% to $136.08, trading roughly 70% below their 52-week peak of $457.22. This decline followed Bitcoin’s drop below $67,000, a liquidation of $1.4 billion in longs and a 10-day ETF outflow streak that has withdrawn over $3 billion.
2. Debt Repurchase and Cash Reserves
The company repurchased $1.5 billion of convertible debt, reducing cash reserves to $871 million. These funds now cover only six months of the $1.7 billion in annual preferred dividend obligations, tightening liquidity.
3. Funding Outlook and Bitcoin Strategy
With diminished reserves and upcoming dividend payments, MicroStrategy may issue new shares to finance Bitcoin acquisitions. Such share issuances could further pressure stock performance if institutional buyers do not step in.
