MicroStrategy sells Bitcoin for first time, ends “never‑sell” stance

MicroStrategy (MSTR) sold 32 BTC at an average $77,135 per coin on June 1, marking the company’s first outright Bitcoin liquidation and ending its long‑standing “never‑sell” policy, a move that knocked Bitcoin about 5.5% lower and left the firm’s balance sheet under fresh strain【2】.

Shift from “never‑sell” to active balance‑sheet management

In its Q1 earnings call, MicroStrategy’s CEO Phong Le said the firm will now consider selling Bitcoin when it is “accretive to Bitcoin per share,” a departure from the “never sell” doctrine championed by founder Michael Saylor【1】. The company’s $12.5 billion Q1 net loss, driven by a slump in Bitcoin’s price, prompted the shift. Le noted that the firm can sell Bitcoin to buy U.S. dollars or to settle debt if doing so improves the Bitcoin‑per‑share metric, which measures how much Bitcoin each share represents【1】.

The sale was funded by the company’s $2.25 billion U.S. dollar reserve, created in December to meet preferred‑stock dividend and interest obligations【1】. Despite the reserve, the liquidation suggests that the cash buffer may be insufficient to cover the growing fixed obligations tied to newly issued preferred securities【2】.

Scale of the Bitcoin treasury and market context

At the end of Q1, MicroStrategy held 818,334 BTC valued at $61.81 billion, acquired at an average cost of about $75,500 per coin, representing almost 4% of the total Bitcoin supply【1】. After the sale, holdings rose to 843,076 BTC, but the average cost remains above the current Bitcoin price of roughly $67,338, leaving the treasury “underwater” on paper【2】. The company’s BTC yield—a measure of Bitcoin‑per‑share growth—has been about 9% year‑to‑date, reflecting the net increase in Bitcoin exposure relative to its share count【1】.

Analysts warn that lower Bitcoin prices increase pressure on MicroStrategy’s balance sheet, potentially forcing additional sales that could further depress the cryptocurrency’s price, creating a feedback loop between the firm’s liquidity needs and market dynamics【2】.

What to watch

• Bitcoin price thresholds – A sustained drop toward $60,000 could intensify balance‑sheet pressure and trigger more sales.
• Preferred‑stock dividend schedule – Upcoming dividend payments will test the adequacy of the $2.25 billion reserve and may prompt further Bitcoin disposals.
• Future BTC yield trends – Changes in the Bitcoin‑per‑share metric will signal whether the firm is increasing or decreasing its net exposure.

MicroStrategy’s first Bitcoin sale underscores a pivotal change: the company is now willing to liquidate part of its treasury to meet financial obligations, raising questions about how many more coins may be sold if Bitcoin remains below the firm’s cost basis and preferred‑stock liabilities keep rising.