- Bitcoin dropped over 6% following Strategy‘s announcement that it sold a small portion of its holdings.
- The sale contradicted years of promises by founder Michael Saylor that the firm would never sell its Bitcoin.
- Proceeds from the sale, which yielded roughly $2.5 million, will be used to fund dividends on the company’s preferred stock.
- The sale occurred amid a broader market downturn, with the Crypto Fear & Greed Index falling into “Extreme Fear” territory.
Bitcoin experienced a significant price drop this week after corporate holder Strategy (formerly MicroStrategy) disclosed a rare sale of 32 of its coins. The world’s most prominent cryptocurrency fell 4.4% within 24 hours of the filing, then dropped another 2% shortly after. This marked the first time the company sold Bitcoin since December 2022, breaking a long-standing accumulation streak.
The sale directly contradicted repeated public assurances from Strategy leadership, particularly founder Michael Saylor. He had previously told Bloomberg, “Never. No. We’re not sellers. We’re only acquiring and holding BTC.” Consequently, the move spooked markets and triggered widespread media coverage. Despite representing just 0.004% of Strategy‘s massive stack, the news fit a bearish market mood perfectly.
According to its recent SEC filing, the company sold the coins at an average price of $77,135. This price was slightly above its blended cost basis of $75,699. The filing stated, “Proceeds from the bitcoin sales are expected to be used to fund distributions on preferred stock.” This funds dividends for products like its STRC shares.
Market participants interpreted the sale as a signal that even the most committed buyer could become a seller. Meanwhile, broader factors like falling Gold prices and soaring AI stocks contributed to the crypto sell-off. The company’s STRC shares also traded lower following the announcement.
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