MicroStrategy Sells $105M in Bitcoin Below Cost

Michael Saylor, CEO of MicroStrategy, has sold $105 million worth of Bitcoin at below cost. In a recent filing with the Securities and Exchange Commission, the company disclosed that it had sold 1,638 BTC between July 27 and August 2 at an average price of $63,957.

This sale is notable given Saylor's previous statements on Twitter, where he said he has never sold any of his Bitcoin. However, as CEO of MicroStrategy, a public company, Saylor has stated that the company's strategy is separate from his personal views.

The funds raised from this sale were used to fund dividends on MicroStrategy's preferred stock, known as STRC, and to buy back shares of this stock at an average price of $89 per share. MicroStrategy still holds 842,138 BTC, which it purchased at an average price of $75,419 per coin.

Some analysts have questioned the decision to sell Bitcoin below cost, citing the fact that the company's preferred stock has a dividend rate of 12% and that Saylor may be motivated to sell more Bitcoin in the future. However, MicroStrategy's own analysis suggests that it is buying back its preferred stock at a discount, effectively getting a dollar for 89 cents.