Strategy Sells 32 BTC for $2.5M

[legiteum]

Honestly, selling 32 BTC isn’t even the worst news out of Strategy this week…

In spite of having nothing but a money losing business and a hunger for Bitcoin, Strategy just spent more than 70 million dollars on a private jet so Saylor can fly around private telling people to sell their kidneys to buy Bitcoin. Shareholders picking up the tab for this is way worse than selling some BTC. The ongoing costs of this plane not to mention borrowing at 11.5% to make the down payment show that Saylor is enjoying the ride while shareholders pick up the check.

This is the factor that I think so many don't get about Bitcoin and it's manipulation by the whales like Saylor, Musk and Trump: they spend absolutely vast amounts of money/energy pumping Bitcoin, so if that factor goes away--or consumers start to distrust them--then this factor doesn't just disappear, it reverses.

In other words, if you are a Bitcoin whale of $5B in BTC, spending (say) $200,000,000 per year in pro-BTC promotion programs is just good business. You can get thousands of agents to work for you, you can buy "ads" (that don't exactly look like ads, e.g. op-ed articles etc.), you can enlist an army of PR people to take prominent members of the press out to dinner 7 days a week in order to make them write positive stories about BTC, you can juice favorable press stories with artificial clicks in order to make sure anybody who says something positive about BTC is rewarded, and so on.

And crypto was the #1 political donor in 2024. That's crazy: bigger than Big Oil, or Big Pharma, or the teacher's unions, or anything else.

If these billionaires get bored and see more pay dirt in AI investments, then BTC would lose ALL OF THIS. That would have a MASSIVE negative effect on the price....

[Alpen]

Saylor thought selling 32 BTC was completely negligible for the market. Has he never heard of the butterfly effect?

I suspect he knew very well what would happen, but he felt he had no choice.

Saying what he said a thousand times before--that he'd never ever ever sell his Bitcoin--put him in a legal jam. He had do something, even if it hurt the market.

Saylor thought selling 32 BTC was completely negligible for the market. Has he never heard of the butterfly effect?

He probably knew that, BUT he probably underestimated its market impact. Chad Saylor was the Bull Cycle's LARGEST bidder, therefore selling "some" Bitcoin will not be take positively. There are Saylor believer who might be starting to doubt "Strategy's strategy", calling it a Ponzi Scheme.

     👀

Saylor thought selling 32 BTC was completely negligible for the market. Has he never heard of the butterfly effect?

He knows that and he's like us that has to sell whenever they have no choice but to do it. I think that this bear market is only waiting for that small impact at first to take effect by the retailers and shall create this big move that we're seeing right now. It won't be a huge surprise to see that it will be written in the headlines that the Strategy has bought xx again during this dip.

I looked at Strategy's financial statements, and Saylor really had no other choice but to liquidate a portion of their Bitcoin. The company would have gone bankrupt long ago based on its core business alone. Their software development and licensing consistently post annual losses ranging from $50 million to $100 million. The generated cash flow is barely enough to cover payroll, and that's it—while the deficit keeps growing.

That is exactly why Saylor went all-in on Bitcoin. Crypto allowed them to dilute equity and issue $25 billion worth of shares. No other US company has come anywhere close to that figure.

[OgNasty]

Now the Strategy CEO, Phong Le has filed an intent to sell more than $11M worth of MSTR stock. Sure seems like he’s trying to cash out while there’s still something left or perhaps before he gets fired for allowing the creation of this death spiral… Another day, situation continues to deteriorate.

[legiteum]

[...] The company would have gone bankrupt long ago based on its core business alone. Their software development and licensing consistently post annual losses ranging from $50 million to $100 million. The generated cash flow is barely enough to cover payroll, and that's it—while the deficit keeps growing.

That is exactly why Saylor went all-in on Bitcoin. [...]

So the CEO of a failing company that nevertheless has some money left in the treasury decides to go to Las Vegas and spin the roulette wheel one last time, figuring he had nothing to lose. And then his number hit and now he's some kind of genius.  

For every Saylor, there are probably 99 CEOs in this position you've never heard of because their companies are toast. (And no, it's not because "it was Bitcoin" since Saylor's luck wasn't Bitcoin per se, but rather very lucky timing with the market).

[ndutndut]

Saylor thought selling 32 BTC was completely negligible for the market. Has he never heard of the butterfly effect?

He probably knew that, BUT he probably underestimated its market impact. Chad Saylor was the Bull Cycle's LARGEST bidder, therefore selling "some" Bitcoin will not be take positively. There are Saylor believer who might be starting to doubt "Strategy's strategy", calling it a Ponzi Scheme.

     👀

The amount of Bitcoin held by Saylor/MicroStrategy is nearly the same as Satoshi's wallet. So, when Saylor sold Bitcoin even if it wasn't much he was certainly aware that the market would react negatively, and even worse scenarios could occur. Because with holdings like Saylor's, if they start selling, even if they don't, investor panic will begin and a bear season could occur.

This can be seen from history. Every time Saylor sold BTC, it was almost always at the bottom of a cycle. If I'm not mistaken, four years ago, he also sold Bitcoin, and the market immediately crashed. Now, he's selling 32 BTC, and the price will likely drop again. Essentially, people may underestimate 32 BTC, but sometimes the market reacts to the message, not just the numbers. So, we should all use this as an opportunity to continue accumulating Bitcoin for the long term.

[nelson4lov]

So the CEO of a failing company that nevertheless has some money left in the treasury decides to go to Las Vegas and spin the roulette wheel one last time, figuring he had nothing to lose. And then his number hit and now he's some kind of genius.  

For every Saylor, there are probably 99 CEOs in this position you've never heard of because their companies are toast. (And no, it's not because "it was Bitcoin" since Saylor's luck wasn't Bitcoin per se, but rather very lucky timing with the market).

Haha, what's unlucky is Tom Lee with his ETH investments and Forward industries with their $1.5B purchase of Solana at $232 a piece now worth +/- $458m. These DATs saw how much Saylor was making on his bitcoin purchases and instead of join into buy more Bitcoins, they ended up buying shitcoins and they're now being punished severely for it. I don't think what these guys are doing is genius considering the fact that all they do is buy and then shill their bag all the time.

[ingiltere]

The amount is very small. It doesn't make sense to attribute the recent drop to this sale. It's not just MicroStrategy, any company can sell BTC. This doesn't harm BTC. You're making too much of this. MicroStrategy is being affected by the BTC drop much more than we are. Why should I be upset that the value of the few coins I hold has dropped? I can hold onto them for the longer term. Let them worry about it, it's not our problem. We don't have shareholders to whom we are accountable.

[asriloni]

Now the Strategy CEO, Phong Le has filed an intent to sell more than $11M worth of MSTR stock. Sure seems like he’s trying to cash out while there’s still something left or perhaps before he gets fired for allowing the creation of this death spiral… Another day, situation continues to deteriorate.

It has nothing to do with cash out. He sells 11m$ worth of MSTR in order to pay the tax for his vested shares. So he's doing it to fulfill his responsibility. The headline sounds clickbait, but he's not selling it for himself. It also has nothing to do to create a death spiral for btc too.

[X-ray]

The amount is very small. It doesn't make sense to attribute the recent drop to this sale. It's not just MicroStrategy, any company can sell BTC. This doesn't harm BTC. You're making too much of this. MicroStrategy is being affected by the BTC drop much more than we are. Why should I be upset that the value of the few coins I hold has dropped? I can hold onto them for the longer term. Let them worry about it, it's not our problem. We don't have shareholders to whom we are accountable.

The fearmongering amplifies the news.

$2.5M is small compared to the daily trading volume, executing market order with that amount won't even move the price and yet the effect was heavy.

It's simply because lately people have become irrational and the market has become overblown.

The news outlets keep making headline about Strategy breaking its vow to not sell bitcoin doesn't help either.