Key facts
- MicroStrategy's stock (MSTR) fell 9.15% on Tuesday.
- Bitcoin price dropped below $67,000.
- MicroStrategy sold 32 BTC for $2.5 million.
- This was MicroStrategy's first net reduction in bitcoin holdings since December 2022.
- Proceeds funded distributions on MicroStrategy's perpetual preferred stock.
- Strive, Inc. (ASST) stock also fell 6.23%.
Bitcoin's price dropped into the mid-$67,000s on Tuesday, causing a significant decline in crypto-linked equities. Bitcoin has fallen over 11% in the past week, falling below $67,000 for the first time since early April. MicroStrategy (MSTR), a prominent Bitcoin treasury stock, tumbled 9.15% to $136.08, nearing its 52-week low. Coinbase Global (COIN) fell 4.23% to $173.74. Strive, Inc. (ASST), another Bitcoin treasury company, dropped 6.23% to $16.10. MicroStrategy sold 32 Bitcoin for $2.5 million between May 26 and May 31, averaging $77,135 per coin. This marked the company's first net reduction in bitcoin holdings since December 2022, impacting its 'never sell' posture championed by Executive Chairman Michael Saylor. The proceeds funded distributions on STRC, MicroStrategy's perpetual preferred stock. This sale occurred amidst significant outflows from U.S. spot Bitcoin ETFs, totaling roughly $3.45 billion over 11 sessions. Additionally, the Mt. Gox estate moved 10,422 BTC, valued at approximately $739 million, as its creditor repayment deadline approaches. Geopolitical tensions, including Iran suspending nuclear negotiations after Israel's escalation in Lebanon, contributed to a risk-off sentiment in global markets. Strive, Inc. acquired 2,500 BTC for approximately $185.2 million at an average price of $74,092 per coin, increasing its holdings to 19,000 BTC. Canaccord has lowered its stock price target for MicroStrategy due to concerns about its Bitcoin sale.