MicroStrategy's Strategy Sells $105M in Bitcoin at a Loss to Support Preferred Shares

Headline: Saylor’s Strategy Sells $105M in Bitcoin to Shore Up Preferred Shares Good morning. MicroStrategy’s corporate vehicle, Strategy, quietly unloaded more Bitcoin last week — and the move is being read as an attempt to stabilize its preferred stock even at a loss. Key facts - Strategy sold 1,638 BTC for $104.7 million last week, per an 8-K filed Monday. - That reduces its holdings to 842,138 BTC from 843,775 it held since early July. - The sales averaged $63,957 per BTC, roughly $11,500 below the company’s $75,419 cost basis — meaning the company sold at a loss. - Strategy has not bought any Bitcoin since June 22, its longest buying pause on record. - The company also sold $291 million of MSTR shares. - How proceeds were used: $52.4 million funded dividends on Strategy’s preferred stock (STRC); $52.3 million went toward an $81 million buyback of STRC preferred shares (the second repurchase in two weeks under a $1 billion program); the remainder boosted cash reserves to about $4 billion — what Strategy calls roughly 2.3 years of runway. What this means Strategy is effectively selling BTC at a loss and liquidating MSTR stock to support its preferred-class securities (STRC), which have traded below their $100 par value since mid-May. That dynamic compresses the capital structure and can dilute common shareholders while prioritizing preferred holders — a move many investors see as problematic. Messaging shift from Saylor Michael Saylor has also shifted his public tone. Yesterday he clarified, “When I say ‘Never Sell Your Bitcoin,’ I speak as one saver to another. I have never sold mine,” adding that Strategy is a public company that may buy or sell BTC to manage capital. That contrasts with his earlier, absolutist rhetoric — e.g., “Sell a kidney if you must. But keep the Bitcoin” — and highlights the difference between his personal holdings and the company’s balance-sheet actions. Market context Bitcoin’s price has held up despite a week of negative headlines — including a reported $100M+ Coldcard hack and this $100M+ sale by Strategy — with the price essentially flat on the week. That resilience suggests negative news may be having less immediate price impact, possibly reflecting where we are in the market cycle. Note: Morning Minute is a daily newsletter by Tyler Warner. The analysis and opinions are his own and do not necessarily reflect those of Decrypt.