MicroStrategy (MSTR) buyers flagged a curiously timed bitcoin (BTC) withdrawal proper earlier than the corporate’s founder, Michael Saylor, introduced a $531.9 million buy this morning.
They requested why the corporate seemingly created three model new wallets and withdrew 7,382 BTC mere hours earlier than saying its acquisition of 4,980 BTC.
The timing and the quantities appeared “too weird.”
The info comes from Arkham, which compiles wallets and belongings that may be underneath MicroStrategy’s management. Nevertheless, not one of the wallets or their actions are formally confirmed by any proof of reserves.
To be clear, MicroStrategy doesn’t formally disclose its wallets.
However, one observer speculated that the corporate’s dividend-yielding most well-liked shares may present a rational rationalization for yesterday’s on-chain actions.
Certainly, the corporate has issued three sequence of most well-liked shares: Strike (STRK), Strife (STRF), and Stride (STRD). The previous pays 8% and the latter two yield 10% yearly.
Though the seniority, rights, and dividend mechanics are distinct inside every sequence, probably the most related high quality that all of them share is the denomination of their payouts.
All three sequence are payable in USD.
MicroStrategy most well-liked dividends are due right this moment
Furthermore, the payout date for 2 of the preferreds, STRK and STRF, is right this moment. That makes the switch of BTC yesterday much more coincidental with a money obligation this morning.
By some means, the corporate should have possessed the USD this morning to make these payouts.
With damaging working earnings and earnings earlier than curiosity, taxes, depreciation, and amortization over the trailing 12 months, in addition to the primary quarter of 2025, it’s tough to service these dividend obligations from extra income.
Nonetheless, the corporate reported $60 million in money as of March 31, so it’s attainable the corporate had sufficient money for right this moment’s payout.
In fact, just a few buyers have been nonetheless involved that the corporate may need needed to promote BTC to lift the capital for these dividends. Promoting even a small quantity of BTC would have been disappointing to followers of Saylor, who imagine he by no means intends to promote BTC.
Nevertheless, given the corporate’s money steadiness — to not point out Saylor’s appreciable entry to company debt markets — it’s unlikely that yesterday’s withdrawal of seven,382 BTC associated to any sale.
Coinbase Prime Custody
Certainly, all three transactions concerned within the 7,382 BTC withdrawals paid a small quantity, close to 0.000084 BTC, to Coinbase Prime addresses, doubtless as an on-chain payment cost.
Learn extra: We made a dictionary of MicroStrategy’s invented terminology
For instance, Arkham’s label of a MicroStrategy-initiated 0.000084 BTC withdrawal to 3J7cUjBZxvGRCwFBz3q23zAsnhFfZrDSSU notes a Custody Gasoline Provider.
Arkham categorizes a withdrawal of 0.000084 BTC to “Coinbase Prime Custody Gas Supplier.”
In different phrases, the most definitely rationalization for yesterday’s withdrawal of seven,382 BTC — even amid its 4,980 BTC buy announcement this morning — is a easy switch into Coinbase Prime custody.
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