Bitcoin (BTC) and MicroStrategy (MSTR) stock plunged on Tuesday after the company disclosed its first BTC sale in 41 months. The move reignited debate over how much the asset depends on one corporate buyer.
MicroStrategy disclosed in a Form 8-K that it sold 32 BTC for roughly $2.5 million. The sale ran from May 26 to May 31, with proceeds earmarked for preferred stock dividends.
A Tiny MicroStrategy Sale Triggers an Outsized Reaction
The disposal equals about 0.0038% of MicroStrategy’s 843,706 BTC stockpile worth near $63 billion. The position now sits on more than $6 billion in unrealized losses against an average cost of $75,702.
That math did not stop the sell-off. MSTR closed down 9.95% on the day and has shed nearly 70% over the past year. Its market capitalization has fallen from above $160 billion to roughly $48 billion.
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In the same way, Bitcoin slumped 8.58% to trade near $67,206, extending a slide below $70,000 tied to record ETF outflows.
“On one hand, they only sold 0.004% (literally) of their BTC so it’s pretty histrionic framing to say ‘U-Turn’ and ‘remain solvent’ but on other hand why bother selling such an insignificant amt knowing full well the media/haters will go wild with histrionics and TD dances?” ETF expert Eric Balchunas posed, alluding that the optics were poorly timed, even if the dollar amount was negligible.
Michael Saylor’s Premium Problem
The decision reverses years of messaging from founder Michael Saylor. He once told investors, “Sell a kidney if you must, but keep the bitcoin.”
Deaton, citing the Wall Street Journal, called the move a “U-Turn,” tying it to solvency pressures on Strategy’s STRC preferred dividend obligations.
“The irony is hard to miss: Saylor still appears to have both kidneys,” Deaton quipped.
Balchunas compared the reaction to the 2013 Taper Tantrum. He pushed back on what he sees as fragility in Bitcoin ETF demand.
Bitcoin has grown too reliant on ETFs and the MSTR narrative, he argued. Both should be “icing on cake, not whole cake.”
The argument cuts at the heart of Strategy’s aggressive BTC purchases. If a 0.004% sale can wipe billions off MSTR and pull spot BTC lower, the premium looks fragile.
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