Business intelligence firm MicroStrategy sold $2.5 million worth of Bitcoin last week, its first significant disposal since 2022. The company stated the proceeds would fund preferred stock distributions, confirming earlier speculation. The news contributed to a more than 6% drop in its share price and coincided with Bitcoin’s price falling below $72,000.
MicroStrategy sold 32 Bitcoin (BTC) for $2.5 million, reducing its holdings from 843,738 BTC to 843,706 BTC, according to a Monday filing with the U.S. Securities and Exchange Commission. The company’s Nasdaq-traded shares fell more than 6% following the market open.
Proceeds from the Bitcoin sale are expected to fund distributions on preferred stock. The sale follows increased investor scrutiny over whether dividend obligations could pressure the company to sell its Bitcoin.
This marks the company’s first reported Bitcoin disposal since a 2022 tax-loss transaction. Bitcoin traded at $71,939 following the disclosure, according to CoinGecko.
In the same week, MicroStrategy also sold 801,994 Class A shares, generating $128.3 million in proceeds. No new preferred stock was raised during the period.
CEO Phong Le confirmed last week the company might sell Bitcoin at some point. “We’ll likely sell Bitcoin at some point in time, but we will be net increasing our Bitcoin and more importantly, increasing our Bitcoin per share,” the CEO said.
The sale occurred as broader corporate Bitcoin demand showed signs of cooling. Firms acquired a combined 144 Bitcoin over the past week, a sharp decline from 603 Bitcoin the previous week.
Other firms are also adjusting their Bitcoin strategies. ProCap Financial announced it sold about 52 Bitcoin to fund a share repurchase program.
