Strategy Bitcoin Sale Sparks Polymarket Fight Over $50 Million Prediction Market

Strategy’s announcement that it sold Bitcoin is stirring controversy on prediction market Polymarket, where traders are divided over the outcome of a market tied to more than $50 million in wagers.

Decrypt reported on June 1 that the dispute broke out after Strategy said it had sold some BTC for the first time since 2022.

At the center of the dispute is the gap between the timing of the sale and the timing of the disclosure. Strategy sold 32 BTC before May 31, but disclosed the transaction on June 1.

That has fueled a clash between “Yes” and “No” traders in a Polymarket market asking whether Strategy would sell BTC by the end of May. Cumulative wagers on the contract have surpassed $50 million, according to the report.

Polymarket added language stating that facts not confirmed by on-chain data or credible reporting by the deadline would not be recognized, putting more weight behind a “No” outcome.

“Yes” traders, however, strongly object, arguing that the result should not be reversed because the sale itself took place before the deadline.

The final decision will be determined by a vote of UMA token holders, who serve as the oracle system for Polymarket. The case may become a notable example of the debate over prediction-market resolution standards and the timing of information disclosure.