Bitcoin Tumbles Below $64K as Strategy Sells 1,690 BTC
Bitcoin's price plummeted below $64,000 on August 10 after Strategy sold 1,690 BTC to fund preferred stock repurchases. The sudden drop erased nearly 2% of Bitcoin's market capitalization, reducing it to $1.28 trillion and wiping out over $47 million in long leveraged positions.
The downturn comes amidst regulatory and technical headwinds, including controversy surrounding the CLARITY Act vote and a BIP-110 chain split. Despite this, Bitcoin had briefly reached an intraday high of $65,416 earlier that day.
Strategy CEO Phong Le defended the asset sale, stating 'Our USD Reserve and Duration are now at all-time highs.' However, critics like Peter Schiff questioned the logic of buying or holding STRC common stock. Macro strategist Dan Hillery pushed back against critics, arguing that selling a portion of Bitcoin to repurchase shares trading at a discount is an accretive capital management step.