Saylor’s Strategy Sells More Bitcoin: Is Another BTC Crash Coming?

Strategy has completed its second BTC sale in just over a month, announced the firm’s co-founder and former CEO, Michael Saylor.

The company has disposed of 3,588 BTC for $216 million to fund dividends on its Digital Credit securities. Its total holdings have dropped to 843,775 BTC, while its USD reserve remains at $2.55 billion.

More BTC Sales

Recall that the NASDAQ-listed BTC accumulator announced in late May that it had sold a minor portion of its crypto fortune (32 units) to support preferred stock distributions.

Although the actual sale was quite negligible, the magnitude was felt for weeks. Bitcoin’s price nosedived in the week after the move became public, and kept plunging during June to under $58,000 at the end of it.

Strategy’s STRC plummeted from its par price of $100 to under $75 at one point, prompting numerous analysts to warn that the worst is yet to come. Some even speculated that the firm would have to sell over 50,000 BTC in the following couple of years.

Meanwhile, CryptoQuant urged the firm to halt its BTC purchases and focus on rebuilding its USD reserve, which appears to be unfolding now.

Saylor Said So

In contrast to today’s sale, the company announced a major restructuring last week. Instead of making continuous bitcoin-only buys, it launched the Digital Credit Capital Framework to enhance liquidity and long-term BTC exposure.

It increased its USD reserves to the aforementioned $2.55 billion, covering 17.4 months of dividend payments. However, it warned that it could sell up to $1.25 billion in BTC to expand that dividend payment period to over 25 months.

Before the latest and third-ever BTC sale, Saylor republished a recent post of his regarding the state of bitcoin and its future development. He believes the cryptocurrency and the blockchain behind it will evolve by “changing less at the protocol layer and mattering more everywhere else.”

He added that the base layer will eventually harden, the capital markets will deepen, and digital credit will expand, as the “world will build on Bitcoin.”

How Will BTC Respond Now?

All eyes are now on the cryptocurrency’s price, given what transpired after the previous Strategy sale. The asset has recovered some ground and tapped $64,000 earlier today, where it was stopped. However, it has dropped by over two grand since then, as a major portion of those losses came after Strategy’s announcement.

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