Strategy, the world’s largest institutional Bitcoin investor, continues to sell BTC. Following its initial sale of 32 BTC, the company announced a new sale yesterday, selling 3,588 BTC worth $216 million.
Although BTC initially dropped below $62,000 following the news of Strategy’s sale, it is generally accepted in the market that Strategy’s selling actions have benefited Bitcoin.
At this point, Grayscale analysts noted that Strategy’s BTC sale reduced financing risk and helped stabilize the price.
Grayscale Strategy stated that the Bitcoin sell-off wave would help restore confidence in Bitcoin and establish a solid bottom for the price.
According to Grayscale, the sale of approximately $216 million worth of BTC increased Strategy’s dollar assets, providing enough cash to cover approximately 17 months of dividend payments.
Grayscale Research Head Zach Pandl said, “Strategy has no problems on its balance sheet. It holds approximately $52 billion worth of Bitcoin, has about $7 billion in debt, and has sufficient funds to meet its debt and dividend obligations. Its annual preferred stock dividend requirement is less than $2 billion.”
According to Pandl and Grayscale analysts, the reason Strategy’s Bitcoin sales were viewed positively is that the company formalized the sales with an announcement in June.
“Strategy had previously denied allegations of selling Bitcoin, but they reassured the market with their funding plan announced in June.”
Grayscale’s view differs significantly from JPMorgan’s, which recently warned that Strategy acting as both a buyer and seller of Bitcoin could create additional uncertainty in the market. In that context, the bank suggested building larger cash reserves through equity financing rather than relying on Bitcoin sales.
*This is not investment advice.
