Strategy sold 32 Bitcoin the previous week, marking the Bitcoin treasury firm's first BTC sale since 2022 and reversing its long-held 'never sell' stance, according to an 8-K filing disclosed Monday. Company Chair Michael Saylor stated in an earnings call last month that 'we will probably sell some Bitcoin to pay a dividend just to inoculate the market and send the message that we did it.' The move came after Strategy retired $1.5 billion in 2029 convertible bonds using $1.38 billion in cash reserves and purchased 24,869 BTC from a $2 billion STRC offering, draining corporate cash reserves ahead of monthly dividend payouts to STRC holders. Bitcoin dropped roughly 10% from $74,000 to $65,400 following the disclosure, triggering $1.76 billion in leveraged position liquidations across the crypto market on June 2, per CoinGlass data. Strategy's preferred perpetual stock STRC depegged from its $100 par value to $94.84, while common stock MSTR fell 9.6% from Monday's open to $134, slipping another 4% Wednesday to $130, according to Yahoo! Finance.
Bitcoin and Strategy Stock Prices Drop Following Sale Disclosure
Bitcoin plunged sharply on the news of Strategy's sale before slipping to lows under $66,000, pushing liquidations of leveraged positions in the crypto market to $1.76 billion on June 2, per CoinGlass data. STRC, the company's preferred perpetual stock, dropped from its $100 par value to $94.84, where it currently trades. Strategy's common stock MSTR dropped 9.6% from Monday's open to $134, slipping by another 4% Wednesday to $130, per Yahoo! Finance. Bitcoin is trading at around $65,560, down 3.1% over the past 24 hours, according to CoinGecko data.
Analysts Debate Structural Impact of Strategy's Cash Management Decisions
Ryan Yoon, senior analyst at Tiger Research, told Decrypt that STRC's depegging 'signals a structural crack in MSTR's leverage-heavy Bitcoin flywheel.' Yoon stated, 'Burdened by massive dividend obligations, hedge funds feared Michael Saylor might be forced to liquidate some Bitcoin to service debt. This shattered the 'never sell' narrative, putting immediate downward pressure on Bitcoin.' Crypto economist Alex Kruger tweeted Tuesday, 'It's tragicomic how bad Saylor's recent moves have been. He tried to save STRC by signaling willingness to sell Bitcoin, and cratered it all in the process.' Kruger added that Strategy was 'cornered' and that Saylor 'Should have sold size if he was going to sell.'
Andri Fauzan Adziima, research lead at Bitrue Research Institute, told Decrypt that Saylor's actions were fundamentally sound balance-sheet decisions that were simply poorly timed during a macro-sensitive market dip. Adziima argued that STRC's decoupling to the $95–97 level 'increases the cost of preferred funding, compresses the mNAV premium, and slows the Bitcoin yield engine,' adding that this dynamic pushes the company toward further equity issuance or potential Bitcoin sales to cover dividends. However, he noted that most institutional investors see it as 'navigable leverage friction rather than a death spiral.' Adziima expects stabilization around $65,000 to $68,000 once the immediate noise fades.
Paul Howard, director at cryptocurrency market maker Wincent, told Decrypt that the current friction does not signal a long-term crypto decline, though it may erode Strategy's market share. Howard stated, 'The factors mentioned are all indicative of a likely decline in MSTR's dominance,' noting that the emergence of diverse institutional products and derivatives means investors no longer rely solely on MSTR for exposure. Howard noted that while 'rumors of further selling from Saylor or Mt. Gox distributions' could pressure the downside, regulatory progress like the U.S. Clarity Act could serve as an upside catalyst.
U.S.-Iran War and Inflation Pressures Weigh on Crypto Market Sentiment
Crypto investor sentiment remains depressed as traditional stocks and select altcoins soar while Bitcoin drops. The correction is exacerbated by the ongoing U.S.-Iran war and its second-order effects—including spiking energy costs and rising inflation—which have forced macroeconomic policy to hold interest rates higher for longer, dampening risk appetite. Users on prediction market Myriad, owned by Decrypt's parent company Dastan, have flipped bearish on Bitcoin's outlook, now placing a 58% chance on BTC's next move taking it to $55,000.
FAQ
Why did Strategy sell Bitcoin after years of not selling?
Strategy sold 32 Bitcoin to pay a dividend and 'inoculate the market,' according to Chair Michael Saylor's statement in an earnings call last month. The sale marked the company's first Bitcoin sale since 2022, reversing its 'never sell' stance.
How did Strategy's Bitcoin sale affect the crypto market?
Bitcoin dropped roughly 10% from $74,000 to $65,400 following Strategy's sale disclosure. The move triggered $1.76 billion in leveraged position liquidations across the crypto market on June 2, per CoinGlass data. Strategy's preferred stock STRC depegged from $100 par value to $94.84, while common stock MSTR fell 9.6% Monday and another 4% Wednesday.
