Strategy Challenges Market Assumptions with BTC Sale

Michael Saylor, founder of Strategy, explained why his company sold Bitcoin when it was trading around $59,000 to $60,000. According to him, investors believed that disposing of its holdings would trigger a decline in the token's price.

Saylor said that this scenario could lead to a 'doom loop' for Strategy, forcing it to raise capital through stock sales to cover dividend payments.

However, after Strategy sold some of its BTC holdings, the price of Bitcoin rose. At the time of the update, Bitcoin was trading at $65,196, up 4.3% over the previous seven days.

Saylor also mentioned that Strategy's break-even point is about 3.2%. If Bitcoin appreciates by this amount, the company can sell a portion of its BTC holdings to cover dividends without having to continue issuing equity, he said.