MicroStrategy Considers BTC Sale Amid Falling Market Value | Concerns Over Dividend Payments
Edited By
Omar Al-Sabah
MicroStrategy is feeling the heat as pressure mounts from its heavy dividend obligations amid a declining stock price and market skepticism. As of November 30, the company's market-Nav (mNAV) is dangerously close to the threshold where its value dips below that of its Bitcoin reserves.
What Sparked the Discussion?
The revelation comes due to a struggle with annual preferred share dividend payments, estimated between $750 million and $800 million. Investors are concerned as the stock has tumbled over 60% from its highs, making previous funding methods—such as new equity sales—less viable.
"When mNAV drops below 1, the company becomes worth less than the Bitcoin it owns," a source confirmed.
Investors' Sentiments
Recent comments from the community echo worries about the company's future. The narrative is shifting toward a potential sale of Bitcoin to manage debts, with many equating this scenario to a Ponzi scheme.
Key comments include:
“Building a Ponzi scheme on top of a Ponzi scheme takes some doing,” reflecting widespread skepticism about MicroStrategy's financial maneuvers.
“When a WallStreetBets ape gets to run a company,” suggesting that retail investor sentiment might derail traditional investment principles.
While some commenters view the mNAV drop as a clear signal for liquidation, others hint at a chaotic exit if Bitcoin sales commence.
The Financial Headwinds
MicroStrategy's tactics are raising eyebrows:
The latest funding strategies involve utilizing proceeds from share sales to maintain a USD reserve, aiming to cover dividend payments for at least the next twelve months.
Some argue that this reliance on funding from equity sales to cover dividends is a sign of deeper insolvency.
As one commenter pointed out:
“If people will only buy your shares at a discount on the value of the assets you hold, it doesn’t make sense to sell shares at a loss.”
Key Takeaways
📉 mNAV hovers near the danger zone, raising liquidation questions.
💰 Dividend payments could lead to potential Bitcoin sales.
👀 “The day MSTR starts selling Bitcoin, it’s basically the end.”
Will They Sell? A Glimpse Ahead
The community's sentiment is a mix of pessimism and cautious outlooks, recognizing that the company is at a crossroads. Can MicroStrategy maintain its current strategy without selling assets like Bitcoin? Only time will tell, but investors are bracing for turbulent times ahead.
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Published: December 1, 2025
Possible Scenarios Ahead
There’s a strong chance MicroStrategy may be forced to sell a portion of its Bitcoin to meet dividend obligations in the coming months. Experts estimate about a 70% likelihood this will happen if the mNAV continues to decline. This potential move stems from mounting pressures to honor annual preferred share payments, which hover between $750 million and $800 million. Investors remain on edge, with high volatility in the crypto market further complicating the situation. If MicroStrategy can’t stabilize its stock or engage in successful funding strategies, it may find itself in a tighter squeeze than anticipated.
Historical Echoes from the Collapse of Long-Term Capital Management
A unique parallel can be drawn to the fall of Long-Term Capital Management (LTCM) in the late 1990s. LTCM boasted about its financial acumen, using complex algorithms and strategies to generate above-average returns. However, when market conditions shifted unexpectedly, it faced ruin. The reliance on debt and overconfidence in models mirrored what some fear with MicroStrategy. Each faced overwhelming market pressures—and just as LTCM's rapid decline sent shockwaves through financial markets, a similar fate could await MicroStrategy should it proceed down a perilous path. Just like LTCM, external factors can turn a firm's fortuitous strategies into vulnerabilities.