Strategy’s 3,568 Bitcoin Transfer Was a Fidelity Internal Move, Not a Sale

A transfer of 3,568 Bitcoin linked to Strategy to an external wallet was a routine internal movement within Fidelity Custody, not a sale.

On-chain analyst Emmet Gallek of Arkham said on Sept. 28 that the transaction involving Strategy’s Bitcoin was “neither a sale nor a wallet transfer” and instead reflected a standard movement of funds within Fidelity Custody.

Earlier, on-chain analytics firm Lookonchain said Strategy had transferred 3,568 Bitcoin to another wallet over about nine hours. The assets were worth roughly $297 million at the time, drawing attention over whether the company had sold the holdings or simply moved them between wallets.

Gallek said Fidelity does not segregate customers’ deposited Bitcoin individually, instead treating them as fungible assets and moving funds between custody wallets as needed.

He added that the wallet addresses involved had already been labeled on the Arkham platform as belonging to Fidelity. As a result, the transaction should not be interpreted as a sale of Strategy’s Bitcoin or as a separate asset transfer.

Separately, Strategy disclosed that it purchased an additional 1,665 Bitcoin for about $142.7 million between Sept. 21 and Sept. 27. That increased the company’s total holdings to 847,666 Bitcoin.