Summary
- Strategy, the world’s largest corporate holder of Bitcoin, has formally acknowledged the possibility of selling Bitcoin to fund a debt repurchase and dividend payments.
- With about $63 billion in Bitcoin holdings, Strategy said it is considering a structure under which it would sell part of those holdings to pay dividends.
- Some analysts said Strategy’s large-scale, sustained selling could push Bitcoin below $40,000.
Forecast Trend Report by Period
Strategy, the world’s largest corporate holder of Bitcoin, has formally flagged the possibility of selling some of its holdings to help fund dividend payments and a debt repurchase. Some analysts say a large-scale sale by the company could send Bitcoin sharply lower.
Forbes reported on May 16 that Strategy recently said in a filing with the US Securities and Exchange Commission that selling Bitcoin was one option for financing a debt repurchase of about $1.5 billion. The company said it could use cash on hand, proceeds from its stock issuance program and proceeds from Bitcoin sales.
Strategy has aggressively accumulated Bitcoin since 2020 through large convertible-bond offerings and stock sales. Its holdings are currently estimated at about $63 billion. More recently, it has been raising funds with STRC, a preferred stock product built around a monthly dividend structure.
Chairman Michael Saylor said earlier in May during the company’s first-quarter earnings call that Strategy may sell some Bitcoin to pay dividends. He described the comment as advance notice to the market. The company is considering a structure in which it buys Bitcoin with credit and then sells part of its holdings after the asset rises in value to fund dividend payments.
Investors are focused on the shift in Strategy’s stance. The company had long emphasized a permanent-hold strategy for Bitcoin.
Crypto influencer Lark Davis said Strategy had publicly maintained a “diamond hands” approach of holding Bitcoin indefinitely. In his view, the message has shifted from “we never sell” to “we can sell if it benefits the company.”
Thomas Perfumo, Kraken’s chief economist, said Strategy remains one of the most influential institutions in the market. The key change is that the company has now formally acknowledged the possibility of selling Bitcoin.
Some analysts say market disruption would be hard to avoid if sales actually begin. Shawn Young, chief analyst at MEXC Research, said Strategy holds enough Bitcoin to trigger fear in the market. If large and sustained selling materializes, Bitcoin could fall below $40,000.
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.
