Strategy, the world's largest corporate holder of Bitcoin, sold some of its holdings for the first time in four years, sending Bitcoin prices to a two-month low. While the sale represented just 0.004% of total holdings, it has rattled the market because Chairman Michael Saylor, who has long pledged that the company would "never sell Bitcoin," has broken his own principle.
Strategy disclosed Monday (local time) that it sold 32 Bitcoins worth $2.5 million (approximately 3.8 billion won) at an average price of $77,136 between October 26 and 31. The proceeds will be used to fund dividend payments for STRC, a perpetual preferred stock issued by Strategy. The company currently holds 843,700 Bitcoins.
This is not Strategy's first Bitcoin sale. In December 2022, the company sold 704 Bitcoins, but that was a one-off transaction for tax purposes, and it repurchased a larger amount within two days, maintaining its holding stance. This time, however, the company liquidated Bitcoin to pay preferred stock dividends, marking a key difference. The industry views this as the first time Saylor has effectively broken his strategy of unlimited Bitcoin accumulation.
The market reacted sensitively. According to cryptocurrency tracker CoinMarketCap, Bitcoin fell about 4% after the disclosure, breaking below $70,000 for the first time in two months since early April. Strategy (MSTR) shares also plunged nearly 6% during the session.
The market is particularly wary because Strategy sold Bitcoin near its average purchase price. As of Monday, Strategy's average Bitcoin purchase price was $75,699, not far from the latest sale price. After topping $120,000 late last year to set an all-time high, Bitcoin has fallen more than 40% over the past year to around $70,000.
Industry analysts say capital outflows from the Bitcoin market may continue as U.S. stocks remain strong and major new listings such as SpaceX come to market. With Strategy's share price also down to about a third of its peak, some predict the company is likely to sell more Bitcoin.
"The market no longer views Strategy as a company that only buys Bitcoin in one direction," digital asset research firm Delphi Digital said. "The old myth of 'never selling' has now been broken."
