MicroStrategy has shifted from accumulating Bitcoin to selling holdings at a loss, with the company offloading 3,588 BTC at an average price of $60,196 per coin, according to analysis by Bitcoin critic Peter Schiff. The sales realized an approximate loss of $15,000 per Bitcoin, totaling roughly $54 million in realized losses.
The shift represents a fundamental change in MicroStrategy's capital allocation strategy. Previously, the company funded Bitcoin purchases through equity issuances and debt offerings. Under the new approach, MicroStrategy is now selling Bitcoin to cover interest payments, dividend distributions, debt repayment, and share buybacks—a reversal that assumes substantial future Bitcoin appreciation to offset current losses.
MicroStrategy maintains over 840,000 BTC on its balance sheet. Schiff warned that if the company continues selling at current price levels, cumulative losses could escalate significantly. The strategy underscores the tension between MicroStrategy's stated long-term Bitcoin thesis and near-term cash flow obligations.