MicroStrategy Shifts Focus Away from Buying and Holding Bitcoin
Michael Saylor's MicroStrategy is no longer buying and holding onto Bitcoin as it once was. The company has shifted its focus from accumulating the cryptocurrency to servicing debt obligations using Bitcoin as collateral.
The preferred stock of Strategy, or STRC, has become a priority for Saylor. Dividends on this stock are funded through the USD Reserve, and maintaining that reserve is now the top goal.
Last week, MicroStrategy sold 1,638 Bitcoins to raise $104.7 million specifically for this purpose. The company's average cost per Bitcoin was $75,419, while the sale price was $63,957, resulting in an implied loss of around $11,462 or 15.2% per coin.
However, the preferred stock has rebounded 35% from its June low to $95.18, and is climbing steadily towards its par value of $100.