Strategy Is Now Selling Bitcoin It Acquired Just Days Ago
Submitted by QTR's Fringe Finance
One week ago I argued that the most important change in Strategy’s new bitcoin framework was the company’s willingness to be a seller and how important that makes bitcoin’s price now that the market knows it. We may soon find out.
According to the company’s latest filing, Strategy sold 3,588 Bitcoin between June 29 and July 5. About 1,363 Bitcoin were sold during the first two days of the program at an average price around $59,256, with another 2,225 Bitcoin sold over the following five days at $60,773.
The amount isn’t enormous in the context of Bitcoin’s daily trading volume. In fact, one of the takeaways so far is that the market has absorbed sales of roughly 1,000 to 2,000 Bitcoin per week without any obvious signs of stress. That’s encouraging if you’re a preferred shareholder hoping the company can continue funding its obligations without materially disrupting the market.
But I think investors are missing the more important point. The significance isn’t the 3,588 Bitcoin that were sold. It’s the more than 846,000 Bitcoin that now sit behind Strategy still.
For years, Strategy cultivated the image that its Bitcoin treasury was effectively untouchable. Michael Saylor repeatedly framed Bitcoin as something to accumulate, never distribute. CEO Phong Le spent the better part of the last year telling investors to focus on Bitcoin Yield as the company’s defining metric, celebrating every incremental increase in Bitcoin per share as proof the strategy was working. The company differentiated itself from virtually every other corporate holder by insisting that selling simply wasn’t part of the playbook.
That narrative is over. And quite frankly, now it looks like it was all total bullshit all along. The market now knows Strategy isn’t just willing to sell Bitcoin in size, it already has. And it has formalized a framework under which additional sales aren’t an emergency measure but a legitimate capital management tool.
That changes how investors should think about the balance sheet. Every future discussion about Strategy’s liquidity now carries an obvious follow up question: how much Bitcoin might they sell next?
That’s a very different conversation than the one investors were having just a few months ago.
If there was any doubt that Strategy’s messaging has fundamentally changed, this filing should eliminate it. For years Michael Saylor insisted...(READ THIS FULL ARTICLE 100% FREE HERE).