MicroStrategy sold $135M bitcoin outside $1.25B program

Vaneck Head of Digital Assets Research Matthew Sigel reported that MicroStrategy executed roughly $135 million in bitcoin sales last week outside its board‑authorized $1.25 billion BTC Monetization Program, leaving that authorization intact.\n\nThe Monetization Program allows the company to sell up to $1.25 billion of bitcoin to raise cash for reserves, preferred dividends, interest payments or repurchases. Because the recent transactions were done outside the program, the full authorized capacity remains available.\n\nCompany filings show two tranches: 1,363 BTC at an average price of $59,256 and 2,225 BTC at an average price of $60,773. Between June 29 and July 5 the company sold 3,588 BTC for about $216 million. Proceeds were used to fund preferred stock distributions and to restore the U.S. dollar reserve to about $2.55 billion.\n\nMicroStrategy’s bitcoin holdings fell from roughly 847,363 BTC to about 843,775 BTC after the sales, leaving it the largest corporate holder of bitcoin.\n\nCompany executives have said some sales were needed to meet cash obligations tied to preferred securities and to maintain liquidity. The firm faces approximately $1.5 billion in annual preferred dividend obligations.\n\nSigel described the firm as operating like a hedge fund that trades its capital stack and bitcoin, adding: “You’re buying a hedge fund that can trade five things: its own capital stack and Bitcoin. What P/E do you pay for such a hedge fund? I pay very low.”\n\nJPMorgan warned that formalizing a bitcoin sale policy can introduce “avoidable two‑way risk” into crypto markets. Grayscale noted that pre‑funding obligations reduces tail risk and that the funds raised roughly cover about 17 months of preferred dividend payments.\n\nBecause some sales were executed outside the Monetization Program, MicroStrategy retains the board‑authorized $1.25 billion capacity while using separate sales to address near‑term cash needs.