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MicroStrategy’s first Bitcoin liquidation of 32 BTC at $77,135 each broke its “never‑sell” rule, sending Bitcoin down 5.5% and sparking balance‑sheet pressure
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】.
| At a glance | |
|---|---|
| BTC sold | 32 BTC @ $77,135 each |
| BTC price impact | -5.5% on day of sale |
| Remaining BTC holdings | 843,076 BTC (≈4% of total supply) |
| Catalyst | Sale to fund preferred‑stock dividend obligations |
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】.
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】.
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.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 3 outlets · Jun 28, 2026 · How we report
MicroStrategy treats Bitcoin as its primary treasury asset, using a combination of equity and credit instruments to accumulate holdings while managing liquidity for corporate obligations.
While the firm has historically emphasized long-term accumulation, reports indicate that it has engaged in Bitcoin sales to strengthen dollar reserves and cover dividend payments.
The company raises capital primarily through at-the-market sales of common stock and the issuance of perpetual preferred shares.
MicroStrategy stock often mirrors the performance of Bitcoin, with both assets frequently rising or falling in tandem during market shifts.