MicroStrategy's Bitcoin Sales Reach Tipping Point as Preferred Stock Recovery Accelerates

Michael Saylor's MicroStrategy has been selling Bitcoin to fund its preferred stock dividends at an average cost of $75,419 per coin. The company sold roughly $66 million worth of BTC last week, with the latest transaction transferring 1,030 coins.

The sales come despite Saylor's previous statements that MicroStrategy's buying pressure is a significant factor in Bitcoin's high price. However, the company has rebranded itself from a 'bitcoin treasury' to a 'Digital Credit Framework,' prioritizing debt servicing and preferred stock obligations over accumulating more BTC.

MicroStrategy wants its preferred stock to reach $100 par value before resuming bitcoin purchases. With the stock having recovered 35% from its June low, reaching this threshold is now within sight. However, it's unclear when exactly the selling will stop.