Michael Seller
Submitted by QTR's Fringe Finance
Starting a couple months ago I argued that the most important change in Strategy’s new bitcoin framework wasn’t the amount of bitcoin it was selling. It was the fact that the company had become willing to sell at all.
At the time, many investors dismissed that concern because initial sales were relatively small compared to Strategy’s massive treasury. My point then wasn’t about the few thousand bitcoin that had already been sold. It was about the more than 846,000 bitcoin that remained on the balance sheet. Once management demonstrated a willingness to monetize that treasury, the entire investment story changed.
Investors no longer had to ask whether Strategy could become a seller. They now had to ask when, why, and how often it would sell. This despite the fact that, for years, Strategy cultivated the image that its Bitcoin treasury was effectively untouchable.
The latest filing from Strategy this morning shows that over past week, Strategy sold another 1,637 bitcoin, reducing its holdings to 842,138 BTC. Once again, the amount isn’t enormous in the context of the company’s overall position, and the market has absorbed these sales without any obvious disruption. But that’s beside the point.
The notion that Strategy would be only a limited or occasional seller is fading quickly. The company is now selling bitcoin on a consistent basis. It has sold over 5,000 BTC over the last couple months, approaching 1% of its total holdings. In a market where they hold about 4% of the total supply, it’s not totally immaterial.
Regardless, it is no longer accurate to describe Strategy as a perpetual buyer that won’t sell, or might sell in extraordinary circumstances. Strategy is now a bitcoin seller, period. As Zero Hedge pointed out this morning, Strategy has sold BTC every month since June.
That represents an extraordinary reversal from the narrative management spent years constructing. Michael Saylor repeatedly portrayed bitcoin as...(READ THIS ENTIRE COLUMN 100% FREE HERE).