MicroStrategy sells 3,588 bitcoin for $216 million to fund dividends
In brief
- MicroStrategy sold 3,588 BTC for $216 million at ~$60,000 per coin
- Proceeds fund preferred stock dividends and replenish dollar reserves
- Holdings now total 843,775 BTC at $75,476 average acquisition cost
- BTC Monetization Program retains $1.25 billion capacity
Funding Preferred Distributions
The company said proceeds from the bitcoin sales will be used to fund distributions on its preferred stock and replenish the portion of its U.S. dollar reserve used for those payments. As of July 5, MicroStrategy's USD reserve totaled $2.55 billion.
The sale represents a marked shift from prior activity. MicroStrategy sold just 32 bitcoin about one month prior, signaling a new willingness to deploy holdings for operational needs. This week's liquidation dwarfs that earlier transaction.
Remaining Holdings and Monetization Capacity
MicroStrategy currently holds 843,775 BTC acquired for approximately $63.69 billion, at an average purchase price of $75,476 per bitcoin. The spread between the sale price (roughly $60,000) and the average acquisition cost underscores the company's strategic patience in accumulating the asset over time.
The full $1.25 billion capacity under MicroStrategy's BTC Monetization Program remains available, leaving room for further capital raises without tapping the core bitcoin reserve. The company also said it did not sell any shares under its at-the-market equity program during the week ended July.
Market Reaction
MicroStrategy shares were down 2% in pre-market trading following the announcement. Bitcoin itself traded down to $61,900 from $62,900 prior to the announcement, giving back weekend gains as the broader market absorbed the large-block liquidation.
