MicroStrategy's MSTR Stock Plummets 31% After First Bitcoin Sale Since 2022

MicroStrategy, a prominent cryptocurrency investor, has faced a sharp decline in its MSTR stock following its first Bitcoin sale since late 2022. The sale, worth $2.5 million, was conducted to fund preferred stock dividend payments and represented only 0.004% of the company's total Bitcoin holdings.

The sale of 32 Bitcoins at an average price of $77,135 per coin has raised concerns among investors about the company's strategy. MicroStrategy had previously maintained a 'never sell' policy under its founder Michael Saylor, but CEO Phong Le indicated in early May that the company might break this rule to cover obligations.

The stock's decline reflects investor concern that the sale signals a strategic shift away from accumulating Bitcoins. The company's last Bitcoin sale occurred in December 2022, during the depths of the crypto downturn, and it immediately resumed buying after that. At current Bitcoin prices around $64,000, MicroStrategy is trading far below its average cost per coin and faces an unrealized loss of $17.44 billion on its digital asset holdings.