I don’t think it would have an effect because he sold those shares and someone else took over so it should be balanced just as before.
The shares aren’t destroyed when he sells the ownership is just transferred. So I am assuming there would be no effect on the price of bitcoin. However I am not an expert when it comes to equities so I might be wrong here. Maybe someone else can chime in and explain.
That was my initial thought, but considering from another angle, such shares (I'm not necessarily talking about MSTR here, but about a hypothetical company) would essentially be representing bitcoins, so my instinct tells me there should be an impact.
So what would happen if such dump caused the price of shares to go below the price of bitcoin (ie. they would be traded below company's market value)? If the arbitrage could be applied, i.e. new shareholders could force the company to sell bitcoins - then all is clear. But if new shareholders could not make the decision to sell, then the only impact on BTC price would be that some potential BTC buyers would choose to buy cheaper company shares instead (so reducing demand for BTC and causing the price to drop).
Definitely, but at the initial stage I assume it is gonna have some impact on the price because when it is sold it is believed that something huge has left,
Sure, but that's a psychological effect, and I'm more interested in raw supply/demand market mechanisms.