MicroStrategy's Stock Sinks 39% YTD, Trails Bitcoin ETF It Was Built to Outperform
MicroStrategy's (MSTR) stock is down 39% year-to-date (YTD), significantly underperforming the iShares Bitcoin Trust ETF (IBIT), which it was designed to outperform. This decline comes as a result of the collapse in leverage premium investors paid, resulting in amplified downside for Strategy.
According to data, MicroStrategy has sold about 6,948 BTC since May, generating around $432 million in revenue. The company's holdings are now worth approximately $53.4 billion at current prices, against a cost basis of $63.36 billion, leaving a shortfall of around $9.9 billion.
Executive Chairman Michael Saylor announced a pivot from bitcoin accumulation to capital management at the end of June, and has since floated breaking his 'never sell' mantra in May. Strategy has framed its transactions as funding preferred dividends and building the reserve rather than a broader shift.
The company's dollar reserve reached $4.8 billion, up from $4.65 billion a week earlier, with approximately $820 million of remaining sales capacity for bitcoin sales for dividends, interest, buybacks, and reserve.