MicroStrategy unloaded 32 Bitcoin between May 26 and May 31, the company disclosed Wednesday, marking its first BTC sale since 2022. The move was designed to help fund the 11.50% annual dividend on its STRK preferred stock, which has been trading below its $100 par value—recently around $97. With the preferred stock program frozen, the firm turned to a small Bitcoin sale rather than issuing new shares.
Why a Bitcoin sale now
STRK is structured to trade near $100, but it's been stuck below that mark. MicroStrategy raised the dividend earlier this year to defend the peg, but the stock still hasn't recovered. With issuance stalled—no new STRK shares were sold during the latest reporting period—the company's cheapest route to raising cash dried up. Selling 32 BTC, worth roughly $2.2 million at today's prices, was a last-resort move executives have previously described in detail.
MicroStrategy still holds 843,706 BTC. The 32 coins represent about 0.004% of its hoard. The company also maintains a $900 million cash reserve for dividends and interest, but apparently decided to tap the Bitcoin stack instead.
MSTR share sales pick up the slack
While STRK sales stalled, MicroStrategy didn't stop raising money. In the same week, it sold 801,994 MSTR shares, netting about $128 million. That's a far bigger number than the Bitcoin sale, but it comes at a cost: MSTR shares have been under pressure as Bitcoin trades near $67,252—below the company's average purchase price of $75,702.
The preferred stock program had been a major source of Bitcoin buying this year, even outpacing spot ETFs. But with STRK below par, that spigot is off. The company left billions in STRK capacity open for later, but only if the price recovers.
MicroStrategy maintained the 11.50% STRK dividend rate for June and didn't issue more shares. The June 15 payment is coming due, and the company will have to cover it somehow—either from cash, more MSTR sales, or another small Bitcoin sale. The timing isn't great: Bitcoin is down from its highs, and selling at a loss relative to average cost isn't ideal. But for now, the 32-coin sale bought them a month.
