The sale of some of its Bitcoin by Strategy, led by Michael Saylor, started a new discussion in the crypto market. Investment advisor Ross Gerber harshly criticized the company for obtaining approximately $2.5 million by selling 32 Bitcoins. Although this amount was quite limited within Strategy’s total Bitcoin assets of approximately $ 54 billion, it attracted attention because it was the company’s first Bitcoin sale since the end of 2022.
The reaction in the market grew
Recalling Michael Saylor’s previous statements that he would not sell Bitcoin, Gerber argued that this step triggered the trust debate in the market. According to Gerber, the sale put downward pressure on prices and increased liquidation pressure on speculative positions.
Ross Gerber claimed that Saylor, on the one hand, said that he would not sell Bitcoin, and on the other hand, made a move that shook the market; He argued that this step created a negative cycle on speculators by driving prices down.
CNBC host Jim Cramer also joined the discussion. Cramer described this move as an inefficient move that roiled the crypto market. He also stated that some market observers questioned whether a significant part of the past increases in Bitcoin were linked to the Saylor effect. Cramer stated that this view may be considered extreme, but it is widely spoken in market circles.
The structure of Strategy has become more complex
It is stated that the approach that the company has adopted for a long time, based on buying and holding Bitcoin by borrowing or raising capital, has become more complex over time. Strategy now has to balance the expectations of three different groups of investors simultaneously: direct Bitcoin investors, investors seeking leveraged crypto exposure through the stock, and preferred shareholders expecting cash dividends.
DACM founder Richard Galvin described this situation as the “three-body problem.” Galvin said that in order for an investor group to be protected in this structure, at least one of the others may have to feel more pressure.
Mini dictionary: The three-body problem is used here as a metaphorical expression describing the simultaneous balancing of the interests of more than one party. DACM is known as an investment management company operating in the field of digital assets.
Share and dividend pressure is being monitored
While Bitcoin is trading near its lowest levels in nearly four months following the latest sell-off, Strategy stock is down nearly 70 percent from its peak seen last year. This situation caused the pressure on the company’s financing model to be monitored more closely.
According to the evaluations in the news, increasing the dividend rate in order to defend the nominal value of $ 100 could further increase Strategy’s dividend burden, which has already reached $ 1.7 billion. It is stated that such a step may give a signal to the market that the company is under pressure.
There are also those who view it positively
However, not all reviews are negative. StoneX, which sells securities for Strategy, stated in its report that the sale of 32 Bitcoins showed that the company was able to fulfill its financial obligations without significantly weakening its underlying asset structure.
In its evaluation, StoneX stated that the sale of 32 Bitcoins indicated that the company was able to meet its financial responsibilities without significantly reducing its core asset position.
On the other hand, Strategy shareholders will vote on Monday on a proposal that would switch to twice-monthly dividend payments for STRC. This decision is expected to be closely monitored in terms of the company’s investor balance and cash flow management.
