Summary
- Strategy’s sale of 32 BTC from its roughly 843,706 BTC holdings, along with $128 million worth of stock, has intensified concern over its Bitcoin accumulation strategy.
- Grayscale’s Zach Pandl said a drop in Bitcoin prices combined with rising dividend burdens could trigger additional selling pressure on Stretch and raise the possibility of further asset sales.
- On-chain data showed a recent surge in whale Bitcoin deposits to exchanges, while Bitcoin has fallen about 23%% over the past 30 days, deepening the deterioration in investor sentiment.
Forecast Trend Report by Period
Strategy, the company led by Michael Saylor, is facing mounting concern over its Bitcoin accumulation strategy after making its first-ever sale of the cryptocurrency.
ZyCrypto reported on June 6 that Zach Pandl, Grayscale’s head of research, said Strategy’s recent Bitcoin sale could pave the way for further selling pressure. The company recently sold 32 BTC from its holdings of about 843,706 BTC and also disposed of $128 million worth of stock.
Pandl said the shift in Strategy’s approach could also affect Stretch, its floating-rate preferred stock. Under the current structure, further selling pressure could emerge if Bitcoin prices fall while dividend costs rise.
The market has reacted negatively to Strategy’s first Bitcoin sale. Bitcoin has dropped about 16% over the past week, while Stretch has fallen about 12% since the sale. If Bitcoin prices keep sliding as dividend payment burdens increase, the company could face growing pressure to sell additional assets to raise cash.
Strategy’s ability to keep buying Bitcoin aggressively at current prices is now limited, Pandl said. That structure, he added, could create new challenges for the company.
Institutional sentiment is also deteriorating rapidly. Digital-asset investment products recorded $1.4 billion of outflows last week, with rising geopolitical tensions and broader market weakness weighing on investor appetite. Long-term investors are also turning more cautious as they worry about deeper losses during the recent downturn.
Bitcoin has undergone a steep correction over the past two quarters. After trading above its all-time high of $125,000, it recently fell to around $61,000. At the time of writing, Bitcoin was down 2.2% on the day and about 23% over the past 30 days.
On-chain data also reflects rising investor anxiety. CryptoQuant said Bitcoin deposits to centralized exchanges by large investors have surged recently, a pattern typically interpreted as a sign of rising sell-side pressure.
CryptoQuant said whale Bitcoin inflows to Binance climbed sharply, with about 8,200 BTC deposited on June 2 and more than 6,400 BTC on June 4. The monthly average of whale inflows has risen from about 1,200 BTC in mid-April to more than 2,800 BTC, more than doubling in just a few weeks.
