Last Friday, Michael Saylor was quick to refute new speculation about his company, Strategy, the largest Bitcoin cash institution, secretly selling tens of thousands of Bitcoins during last week’s setback. Saylor, the CEO, described them as false claims, pointing out that the company continues to accumulate Bitcoin balances despite the wave of volatility that pushed Price below $95,000 for the first time in 6 months.
The rumors spread widely after blockchain analytics platform Arkham reported what it described as a decrease in Strategic’s Bitcoin holding from 484,000 to 437,000 BTC, a difference of around 47,000 coins, equivalent to the value of $4.6 billion at the time.
The report spread simultaneously as Bitcoin price broke through the psychological support level of $100,000 and fell below $95,000, by more than 4% in less than 24 hours. Saylor quickly denied the rumors in an article on Platform
Saylor Denies Selling Rumors, Confirms Company Bought 487 Additional Bitcoins This Week
Speaking later on CNBC, Saylor reiterated his stance, not only denying the selling rumors but confirming that they had ramped up buying activity, saying: “We are buying and we will announce new purchases Monday morning.”
Saylor explained that the recent price movements have not destabilized the company’s strategy, adding: “If you want to be a Bitcoin investor, you need a 4-year period and you must be prepared to withstand fluctuations. »
It appears that Strategic’s internal data supports its claims, as the company’s information interface showed that its total Bitcoin holdings reached the value of 641,692 BTC on Monday, consistent with its previous disclosure, and its reports submitted to the US Securities and Exchange Commission (SEC) also confirmed continued currency balance accumulation activities early last November.
However, the sudden increase in currency balances earlier yesterday added to the atmosphere of uncertainty surrounding the already fragile digital currency markets.
Blockchain analysts reported that Strategy moved more than 58,000 Bitcoin to new wallets, a move that boosted algorithmic trading activity and increased selling pressure. Although analysts later attributed these moves to custody reorganization activities and not a liquidation motive, this clarification did not allay market fears.
MSTR Stock Price Hits Year Low as Investors Reassess Stock’s Premium as a Tool to Invest in Bitcoin
Market pressure quickly spread to Strategy’s financial situation, as the price of Nasdaq-listed MSTR stock fell below $200 during pre-open trading Friday, its lowest level since October 2024, and the company’s net asset value multiple briefly fell below 1 for the first time, suggesting investors were valuing the company at less than the value of holding Bitcoin. Own it.
Although the multiple later rose to 1.09, the change represents a reversal from years in which Strategy shares traded higher.
This reversal reflects falling investor expectations; Strategy’s total stock premium has decreased by $79.2 billion since November 2024, according to K33 Research.
While the company raised more than $31 billion through stock issuance during that period, analysts estimate that about $48 billion in implied demand for Bitcoin did not translate into actual purchases of the currency.
Some market observers say investors are no longer using MSTR stock as a direct tool to invest in Bitcoin, while other analysts have dismissed liquidation concerns. On this subject, analyst Willy Woo said that Strategy is unlikely to face selling pressure before 2027 as long as the MSTR stock price remains above $183.19, which is a limit related to the company’s debt structure, noting that Bitcoin’s weak performance in 2028 is just what could force the company to partially sell.
The controversy comes amid broader unrest in crypto markets and the United States, as Bitcoin’s price briefly soared above $106,000 after lawmakers ended a 43-day government shutdown, the longest in the country’s history, but that rise faded again as expectations of an interest rate cut by the Federal Reserve next December waned.
Despite these fluctuations, Strategy remains the largest Bitcoin treasury, but its dominance over institutional holdings has declined from 75% to 60% as other companies acquire more Bitcoin balances.
The post by Michael Saylor denies rumor that he sold 47,000 Bitcoins (Bitcoin-BTC) and hints at ‘surprising and exciting’ new purchases appeared first on Cryptonews Arabic.
