MicroStrategy Sells 32 BTC for First Time Since 2022, Triggering $1.76B in Liquidations

According to an 8-K filing Monday, MicroStrategy sold 32 BTC the previous week, marking the firm's first Bitcoin sale since 2022 and reversing its long-held "never sell" stance. The move sparked a sharp market reaction: Bitcoin dropped roughly 10% from $74,000 to $65,400, while crypto liquidations surged to $1.76 billion on June 2 per CoinGlass data.

The sale occurred as MicroStrategy used $1.38 billion in cash reserves to retire $1.5 billion of 2029 convertible bonds, while simultaneously purchasing 24,869 BTC via proceeds from its $2 billion STRC offering—effectively draining corporate reserves before a major dividend payout. MicroStrategy's preferred stock STRC depegged from $100 par to $94.84, while MSTR common stock fell 9.6% to $134 on Monday before sliding another 4% to $130 by Wednesday. Analysts debate whether the move signals structural distress or merely temporary leverage friction in the firm's Bitcoin acquisition strategy.