MicroStrategy’s 32 BTC Sale and $1.5B Bond Retirement Depletes Cash
MSTR•MicroStrategy sold 32 BTC for $2.5M, reversed its “never sell” stance, used $1.38B cash to retire $1.5B convertible bonds and spent offering proceeds on nearly 25,000 BTC, depleting reserves before dividends. The move triggered a 10% drop in Bitcoin and sent common shares down 13%, while preferred fell below par.
1. Strategic Bitcoin Sale Reverses Policy
MicroStrategy sold 32 BTC for about $2.5M, marking its first divestment since 2022 and a departure from its long-standing buy-and-hold approach. Chair Michael Saylor signaled the move was intended to inoculate the market and fund a dividend, ending the “never sell” narrative.
2. Bond Retirement and Reserve Depletion
The firm used $1.38B in cash to retire $1.5B of 2029 convertible bonds, while deploying proceeds from a $2B preferred stock offering to acquire nearly 25,000 BTC. These combined actions drained liquidity ahead of an upcoming dividend payout to STRC holders.
3. Market Reaction and Share Moves
Bitcoin slid roughly 10% from its early June highs following the announcement, and the company’s common shares fell more than 13% over two sessions. Preferred shares also fell below their $100 par value, reflecting investor concern over the firm’s shifting strategy and cash position.
