MicroStrategy Stock Slides 5.3% After $2.5M Bitcoin Sale to Fund Preferred Dividend
MSTR•MicroStrategy’s stock dropped 5.3% after disclosing a 32 BTC sale raising $2.5M to cover STRC’s monthly costs. Executive chairman Michael Saylor is emphasizing the 11.5% annual dividend on $10.48B of preferred shares as strategy shifts toward Stretch instrument.
1. Bitcoin Sale Details
Strategy sold 32 Bitcoin for $2.5 million in an SEC filing, allocating proceeds to recurring costs for its flagship preferred instrument, STRC, which carries about $100 million in monthly maintenance expenses.
2. Stock Market Reaction
Shares of MicroStrategy dropped 5.3% on the disclosure, reaching their lowest level in six weeks before a partial recovery, reflecting investor concern over any deviation from the firm’s long-held Bitcoin accumulation strategy.
3. STRC Dividend Emphasis
Executive Chairman Michael Saylor has intensified focus on Stretch Corporation’s preferred stock, which offers an 11.5% annual dividend paid monthly, positioning STRC as a premier credit instrument while funding operations through minimal Bitcoin sales.
4. Analyst View and Outlook
Analysts note the 32-coin sale represents just 0.0038% of the company’s 843,706-Bitcoin balance sheet, leaving price targets unchanged at $400, but uncertainty about future liquidations may continue to sway trader sentiment.
