Will Strategy, Holding 800,000 Bitcoins, Sell Again? [Weekend Money]

Lost Market Trust After Selling 32 Bitcoins Despite Vowing "Never to Sell"

Holding USD 1 Billion in Reserves... Unlikely to Sell More for Now

While the price of Bitcoin is on a downward trend, analysts say the likelihood of a massive sell-off by Strategy is low. Strategy is a Digital Asset Strategy (DAT) company that holds more than 800,000 Bitcoins.

On June 13, Kiwoom Securities stated in its report "Strategy: Concerns Over Additional Bitcoin Selling" that "since Strategy holds USD 1 billion in dollar reserves, the possibility of a large-scale Bitcoin sale in the short term is limited."

The price of Bitcoin is currently trending downward. After reaching as high as USD 126,000 in the second half of last year, Bitcoin was trading at around USD 63,000 as of the afternoon of June 12. On June 6, it even broke below the USD 60,000 level. In the market, one of the main reasons cited for the decline in Bitcoin price is Strategy’s selling. At the end of last month, Strategy sold 32 Bitcoins to secure approximately USD 2.5 million as funds for the dividend payment of STRC preferred shares.

This sale was driven by Strategy’s funding structure. Since last year, Strategy has been raising capital for Bitcoin purchases through the issuance and sale of new preferred and common shares. As STRC’s variable dividend rate has risen from 9.0% to 11.5%, and the dividend payment frequency increased from once to twice a month, the cash outflow burden has grown.

Concerns remain that Strategy may sell additional Bitcoins. After the recent sell-off, Strategy purchased 1,550 Bitcoins for USD 101 million. Although the purchase amount is significant compared to the sale, the market perceives that Strategy has deviated from its previous stance of "not selling Bitcoins."

Sim Subin, a researcher at Kiwoom Securities, said, "There is a need to leave open the possibility of small-scale Bitcoin sales by Strategy for the purpose of securing dividend funds, but the possibility of a large-scale sale is low." She added, "For concerns about selling to be fully alleviated, there needs to be a trend reversal in the price of Bitcoin."

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