Balchunas Says Concern Over Strategy's Bitcoin Sale Is Overblown, but Motive Is Unclear
Summary
- Eric Balchunas said Strategy’s Bitcoin sale was overblown because it accounted for just 0.004%% of the company’s total holdings.
- Strategy sold 32 Bitcoin at an average price of $77,135 to fund preferred stock dividend payments, raising about $2.5 million.
- Some analysts said the limited size of the sale makes it difficult to conclude that Strategy has changed its long-term holding strategy.
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Eric Balchunas, a Bloomberg ETF analyst, said concerns over Strategy’s recent Bitcoin sale have been overstated. He also questioned why the company chose to sell a small amount despite being able to anticipate a backlash from the media and critics.
Writing on X on June 2, Balchunas said the Bitcoin sold by Strategy amounted to just 0.004% of its total holdings.
He called it exaggerated to describe the sale as a “U-turn” or an effort to “maintain solvency,” given how small the transaction was relative to the company’s overall holdings.
Even so, Balchunas questioned why Strategy bothered to sell such an immaterial amount when it could have foreseen an outsized reaction from the media and skeptics.
Strategy recently sold 32 Bitcoin at an average price of $77,135 to fund preferred stock dividend payments. The transaction raised about $2.5 million.
The market is debating whether the sale signals a shift in Strategy’s long-term holding strategy. Some analysts say the transaction was too small to conclude that the company has changed course.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
