Why Did the World's Largest Bitcoin Holder, Strategy, Sell Bitcoin for the First Time in Four Years? [Weekend Money]

Only 0.004% of Holdings Sold for Preferred Stock Dividends
"Trading Volume Must Increase for Bitcoin Price Rebound"

The bearish trend in Bitcoin continues. Since mid-May, Bitcoin has remained weak, influenced by noise from Iran as well as interest rates and oil prices. Amid this downturn, on June 1, Strategy publicly disclosed the sale of 32 Bitcoins, further eroding investors' psychological support and causing the price to fall to around $63,000.

Strategy, the world's largest corporate holder of Bitcoin, sold 32 Bitcoins at an average price of $77,135 during the last week of May, securing approximately $2.5 million.

Park Sungje, a researcher at Shinhan Investment Corp., said, "This is the first time in four years that Strategy has sold Bitcoin, and the funds were used to pay preferred stock dividends." He added, "The sale accounted for just about 0.004% of Strategy's total Bitcoin holdings, so it is difficult to interpret this as a signal of a long-term strategic shift. However, it does demonstrate that Strategy can liquidate Bitcoin if necessary."

Although Strategy had previously stated that it could sell Bitcoin when needed, the actual public disclosure of the sale led to a contraction in investor sentiment and pulled down the price of Bitcoin.

Analysts believe this sale by Strategy does not signal a structural change in demand for Bitcoin. Park explained, "Strategy's treasury strategy is not simply about buying Bitcoin unconditionally and increasing holdings. The company uses capital market funding tools such as common stock, convertible bonds, and preferred shares to purchase Bitcoin, focusing on increasing the per-share Bitcoin holding over the long term." He continued, "However, since the company faces fixed financial obligations such as preferred stock dividends, it has indicated that it may liquidate a portion of its Bitcoin holdings if necessary. This recent sale should be understood in that context."

In addition to Strategy's sale, factors such as outflows from exchange-traded funds (ETFs) and weakened risk appetite have also contributed to the decline in Bitcoin prices. Park noted, "Bitcoin fell sharply on a weekly basis, dropping below the $65,000 level. This decline cannot be explained solely by Strategy's sale. Although the amount sold was limited, this symbolic sale event occurred simultaneously with ETF outflows, weakening risk appetite, and a slowdown in trading activity, which together dampened investor sentiment."

In order for a rebound to occur, it will be necessary to confirm the inflow of new buying interest. Park said, "The simultaneous decline in price and trading volume indicates a lack of new buying, and in the short term, confirmation of new buying inflows is essential for a Bitcoin rebound."

He particularly emphasized the importance of a recovery in trading volume. Park stated, "The decrease in Bitcoin trading volume is a key burden in the current decline. If trading volume increases even as the price falls, this can be interpreted as a change of hands after a sell-off. However, when both price and trading volume decrease simultaneously, it signals a gap in buying rather than selling pressure, and therefore, a recovery in trading volume is crucial for a rebound in Bitcoin."

This content was produced with the assistance of AI translation services.