Strategy’s 3,568-Bitcoin Transfer Was Internal Fidelity Transaction, Not a Sale
Summary
- The movement of 3,568 Bitcoin tied to Strategy was not a sale but an internal fund transfer within Fidelity Custody.
- The transaction occurred between wallets already identified as Fidelity-owned, and it was not appropriate to interpret it as a sale of Strategy’s Bitcoin.
- Strategy disclosed that it bought an additional 1,665 Bitcoin for about $142.7 million between Sept. 21 and Sept. 27, bringing its total holdings to 847,666 Bitcoin.
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The transfer of 3,568 Bitcoin tied to Strategy to an external wallet sparked speculation that the company had sold part of its holdings. The transaction, however, was a routine internal movement within Fidelity Custody rather than a sale.
On-chain analytics platform Arkham analyst Emmett Garlic said on Sept. 28 that Strategy’s Bitcoin transfer was “neither a sale nor a wallet transfer.” He described it as 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 about $297 million at the time, drawing attention over whether the company had actually sold the Bitcoin or merely moved it between wallets.
Garlic said Fidelity does not separately segregate each client’s deposited Bitcoin and instead treats the assets as fungible. It moves funds between custody wallets as needed.
He added that the wallet addresses in question had already been identified on Arkham as belonging to Fidelity. In his view, it would therefore be inappropriate to interpret the transaction as a sale of Strategy’s Bitcoin or as a separate asset transfer.
Separately, Strategy disclosed that it bought an additional 1,665 Bitcoin for about $142.7 million between Sept. 21 and Sept. 27. That brought the company’s total holdings to 847,666 Bitcoin.
