The sale by 'Strategic' of their Bitcoin holdings triggered a panic felt by every crypto trader as the price of Bitcoin plummeted sharply, dropping below the $60K level for the first time in months before bouncing back to its current level of $63K.
Michael Saylor, CEO of 'Strategic', defended the company's decision to sell part of their Bitcoin stash amid a wave of criticism linking the move to the recent dip in the coin's price.
'Saylor' clarified during his participation in the 'BTC Prague' conference that he has always advised individuals not to sell Bitcoin, but he never stated that his company wouldn't liquidate some of its holdings when necessary, pointing out that this has been clearly mentioned in the company's disclosures for years.
The statements came after 'Strategy' revealed it sold 32 Bitcoins for around $2.5 million between May 26 and 31, marking the company's first sell-off in years. Although the amount sold was limited, the announcement sparked significant controversy in the market.
Since the deal was announced, Bitcoin has dropped by about 15%, while MSTR shares fell by over 24%.
On the flip side, the investment firm 'Arca' dismissed 'Saylor's' explanation that the market's weakness was due to liquidity shifting towards AI stocks, asserting that a 'strategic' sell-off was the main factor behind the recent pressure on Bitcoin's price.
Despite the controversy, the company continued to bolster its crypto holdings, having recently purchased an additional 1,550 Bitcoins for over $100 million, raising its total holdings to 845,256 Bitcoins at an average purchase price of about $75,680 per coin.#SpaceXIPOUSStocksOpenHigher
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