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MicroStrategy’s MSTR stock fell 79% to $31 bn, now below its 847k BTC holdings; first 32‑coin sale to fund dividends raises questions.
MicroStrategy (NASDAQ:MSTR) sold 32 Bitcoin at $77,135 each—the first liquidation in its history—while its shares trade about 79% below the July 2025 peak and are now worth less than the Bitcoin in its treasury [1][2].
| At a glance | |
|---|---|
| Bitcoin sold | 32 coins ($2.5 m) |
| Treasury holdings | ~847,000 BTC ($51 bn) |
| Stock price | $31 bn market cap, 79% down from $457 peak |
| Catalyst | Dividend funding pressure on preferred shares |
The market premium that once let MicroStrategy issue new shares at a markup to its Bitcoin holdings has evaporated. In late 2024 the stock traded at 3.4 × the per‑share Bitcoin value; by late 2025 that premium fell to 1.2 × and today it is effectively 1 ×, meaning the equity is worth less than the underlying coins [1]. The decline is steeper than Bitcoin’s own 51% drop over the past year, with MSTR shares down 78% in the same period. Lenders and preferred‑share holders have first claim on roughly 41% of the treasury, leaving common shareholders with a residual value that matches today’s market price [1].
MicroStrategy’s preferred‑share program (STRC) funds more than half of its Bitcoin purchases, but the shares now trade about 26% below face value ($74 vs. $100), making new issuances costly [1]. The annual cash dividend on those shares has ballooned to $1.7 bn, outpacing the $1.4 bn cash reserve that covers roughly ten months of payments [1]. To bridge the gap, the company sold 32 BTC for $2.5 m, explicitly stating the proceeds would fund preferred‑share dividends [2]. The sale represents only 0.004% of the treasury, but it marks a departure from Saylor’s long‑standing “never sell” stance.
Even with the sale, MicroStrategy still holds about 843,000 BTC at an average cost of $75,699 per coin, well below the current market price of roughly $67,338 [2]. The key metric for shareholders is Bitcoin per common share, which has been eroding as the premium disappears. In a stress‑test scenario where Bitcoin fell to $26,600 and the stock stayed below half the treasury value, the model still leaves the company with over 731,000 BTC after three years, but the Bitcoin backing each share would drop by roughly 94% [1]. The immediate risk, therefore, is not bankruptcy but a gradual dilution of Bitcoin exposure per share.
MicroStrategy’s first Bitcoin sale underscores a shift from its “never sell” narrative to a cash‑flow‑driven approach, raising questions about how much Bitcoin exposure each share will retain if the premium does not recover.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 2 outlets · Jun 29, 2026 · How we report
MicroStrategy holds 447,470 BTC, valued at roughly $44.3 billion according to its latest filing.
The company plans to raise up to $2 billion through a preferred stock offering and is also considering a large increase in authorized common shares to support additional acquisitions.
Analysts note that the company’s growing debt, preferred‑stock obligations, and dilution risk have pushed enterprise mNAV below 1.0, raising concerns about financial flexibility.
Yes, the company recently sold Bitcoin for the first time in its history, marking a departure from its earlier “never sell” stance.
The stock has fallen about 82% from its peak, while Bitcoin prices have also declined, leading to a significant drop in the market value of the company’s Bitcoin holdings.