MicroStrategy sells $216 million in Bitcoin amid $8.3 billion unrealized loss

MicroStrategy (MSTR) sold roughly 3,558 Bitcoin on Monday, generating about $216 million in proceeds as the cryptocurrency traded near $63,000. The company also reported an $8.31 billion unrealized loss on its Bitcoin holdings for the second quarter, reflecting a price decline from about $68,000 in early April to roughly $60,000 at the end of June, while a realized loss of $0.9 million was recorded on the recent sale.

The firm’s Bitcoin portfolio, now 843,775 coins, was acquired at an average price of $75,476 per coin, making MicroStrategy the largest publicly traded corporate holder of the digital asset. Despite a net increase of only 69 Bitcoin after recent purchases and sales, the average cost of the newly added holdings exceeded $289,000 per coin, according to crypto trader KALEO on X.

The sale follows earlier transactions, including a small 32-coin sale in late May when prices were near $74,000 and a purchase of 3,657 Bitcoin at higher levels. The latest disposition appears aimed at preserving cash to meet dividend obligations on the company’s high-yield preferred stock, Stretch (STRC), whose dividend was recently raised by 50 basis points to 12%.

Analysts note that MicroStrategy now holds cash sufficient to cover more than 17 months of preferred-stock dividends, a level generally viewed as comfortable by investors. With Bitcoin prices volatile, further purchases are unlikely in the near term, and any additional sales would likely be limited unless market conditions or financing needs change.

"Our priority remains to protect dividend payments for our preferred shareholders," a company spokesperson said.

The recent activity suggests a shift from the firm’s earlier stance of continuously buying Bitcoin, a strategy championed by CEO Michael Saylor, toward a more cautious capital-allocation approach.