MicroStrategy’s 2026 bitcoin sales generate $102M in losses

Cryptoquant’s analysis shows MicroStrategy’s 2026 bitcoin monetization program produced more than $102 million in realized losses after the company sold coins below its blended purchase price. The firm has monetized parts of its bitcoin holdings at least four times over the past two years while continuing smaller purchases.

Public disclosures and transaction details show an initial sale of 3,588 BTC for $218.4 million to cover preferred-stock dividends and a recent disclosed sale in the week ended Aug. 9 of 1,690 BTC for $108.6 million, an average of about $64,262 per coin. MicroStrategy’s blended cost basis is near $75,400 per bitcoin. The board has authorized up to $1.25 billion in total sales under the program.

Company filings describe the transactions as capital management rather than responses to a cash emergency. Executives have noted the stock is trading below net asset value, which makes issuing new shares less attractive, and that monetizing part of the bitcoin treasury can fund obligations. Proceeds from recent sales were used to pay dividends on the company’s variable-rate preferred stock, STRC, and to repurchase STRC shares.

Cryptoquant estimates MicroStrategy’s annual preferred-stock dividend obligations have nearly quadrupled to about $1.2 billion as the company issued more preferred equity to finance bitcoin purchases. At current cash balances, dividend coverage declined from more than seven years to roughly 14 months. Analysts estimate restoring a 24-month cushion would require about $2.8 billion in reserves.

MicroStrategy still holds about 840,000 BTC and carries large unrealized losses. Cryptoquant puts unrealized losses at roughly $10.6 billion for bitcoin acquired between 2024 and 2026, as market prices frequently traded below the firm’s blended cost basis. In the second quarter, fair-value markdowns on the bitcoin treasury converted a reported $14 billion paper profit into an $8.22 billion net loss; those markdowns were accounting adjustments and did not involve cash sales.

MicroStrategy’s stock is down about 40% year to date and trades in the low- to mid-$90s. Market participants expect the monetization program to continue given prior sales and remaining board-authorized capacity. The company also added 520 BTC for roughly $35 million even as it sold other holdings.

Whether MicroStrategy will sell more bitcoin will depend on future bitcoin prices and the company’s ability to meet rising preferred dividend obligations without larger disposals. Additional sales at prices below the company’s average cost would increase realized losses.