In a recent statement, Michael Saylor, the executive chair of Strategy, addressed rumors suggesting that the company had sold a significant amount of Bitcoin during a recent market downturn. Reports indicated that Strategy potentially offloaded 47,000 BTC, valued at approximately $4.6 billion. However, Saylor took to social media platform X to refute these claims, asserting that they were untrue and reaffirming that the company continues to accumulate Bitcoin, maintaining its substantial holdings of 640,000 BTC.
As the largest corporate holder of Bitcoin, Strategy”s market influence has seen some decline as new competitors have entered the space. Notably, crypto exchanges like Coinbase and treasury firm Metaplanet surpassed Strategy in purchases during October. This shift, along with a decline in the value of Strategy”s Nasdaq-listed MSTR stock, has raised eyebrows among investors. At the time of reporting, Bitcoin was priced at $205.38, reflecting a more than 17% drop within five days.
Bitcoin”s price movements have been closely linked to broader macroeconomic events, including recent developments surrounding U.S. government funding. Following optimism over a funding deal, Bitcoin”s price surged above $106,000, only to fall below $100,000 after the government reopened, underlining the volatility and sensitivity of the market.
A significant factor contributing to market anxiety was Strategy”s transfer of 58,915 BTC, valued at $5.77 billion, to new wallets. This transfer led to speculation of a potential sale among traders on X, triggering a flurry of reactions. Analysts later clarified that this move was likely part of a custodial restructuring rather than a liquidation, indicating that the company”s actions were routine.
Compounding these concerns was a notable drop in Strategy”s Net Asset Value (NAV), which fell below 1 for the first time. This decline suggested that MSTR shares were being valued lower than the Bitcoin reserves held by the company. While the NAV slightly recovered to 1.09 at the time of reporting, it still indicated a market valuation discount relative to Bitcoin assets.
Despite these challenges, analysts have attempted to alleviate investor fears. Bitcoin analyst Willy Woo suggested that forced liquidation is unlikely as long as MSTR shares remain above $183.19, which correlates with an approximate Bitcoin price of $91,500 at a 1x NAV multiple. Overall, the consensus among experts is that Strategy”s wallet transfer does not indicate any immediate distress, and the company”s strategy remains focused on long-term Bitcoin accumulation.
