MicroStrategy sells 1,690 BTC for $108.6M stock buyback

MicroStrategy has just put 1,690 of its bitcoins on the market and used every dollar it raised to buy back its own stock, STRC. The company said it sold the coins for about $108.6 million and now holds 840,447 BTC, down from 842,137 BTC before the trade. The cash pile behind those bitcoins rose to $4.65 billion, giving MicroStrategy its biggest ever dollar reserve.

The move is part of CEO Michael Saylor’s long-running bet that Bitcoin will outperform cash. MicroStrategy first loaded up on BTC in 2020, borrowing $2.2 billion to buy 21,454 coins. Critics called the strategy reckless; Bitcoin fans said it was the ultimate hedge. Now the company cycles between selling some coins and using the cash to shrink its share count, which rewards remaining investors by boosting each share’s claim on the company’s growing Bitcoin war chest.

This latest swap happened as Bitcoin hovered around $64,000, giving the company a chance to crystallize gains without moving the market too much. Analysts note that MicroStrategy’s balance sheet is now split roughly 80% Bitcoin and 20% cash, a deliberate mismatch that leaves it exposed if regulators ever crack down on crypto or if Bitcoin prices crash. Yet Saylor’s strategy has paid off so far: MicroStrategy’s shares trade at about a 40% premium to its cash-and-Bitcoin value, proving the market still rewards the bold bet.

Next, MicroStrategy plans to keep monetizing its Bitcoin holdings whenever the price looks attractive, while using the proceeds to keep repurchasing shares. Shareholders will watch closely to see whether the company can keep adding coins without triggering tax bills or shareholder lawsuits. If Bitcoin keeps rising, Saylor’s gamble will look brilliant; if it falls, the same debt that turbocharged his early purchases could become a millstone around MicroStrategy’s neck.