Strategy Dumps 1,638 BTC Below Cost Basis.

[Accardo]

Investors or the lenders took those shares because they think it is a good idea. Once they stop thinking it is a good idea, the chain will break, and we will see the biggest black swan event of our lives.

They own these clienteles, now they're trying to own some bitcoiners by igniting dramas  and getting microstrategy a bigger audience. Fewer bitcoiners knew so much about MSTR until the company turned whales. Talking about whales remember that in the past when a whale makes a big sell it stayed anonymous, the conversation was always about who must have done this, and why did they choose to sell 100BTC in the bear market. These companies must have watched and analyzed how bitcoiners talk to some extent about seeing an anonymous person selling a huge amount of bitcoin.

And go ahead to ask; what results would we get when we build our company on the stone of dominating this occurrences by purchasing a large amount of bitcoin and coming out one season to say, we've sold 1000btc of those btc we bought. The results would be getting all the attention in the crypto niche and attracting intending crypto users who would love to transition into buying shares at MSTR. Had they bought a share from a different company say Apple or Amazon it'd be clearer and more transparent.  Today, we now have crypto news sites update whenever MicroStrategy sells a portion of their sats.

[Gragebox]

This is a nothing burger news implying that this has no short term impact and no long term impact(most likely) on the crypto market. They still hold over 840 grand BTC totalling billions of dollars which is why this is a small move by them IMO.

Seems that they wanted to take care of certain debt obligations and some other stuff due to which they went ahead with this move. All is well with the crypto market people.

I do agree with the statement that this should not be used as a bearish signal of magnitude. A partial sale, especially of the holdings that are comparatively small, should not directly indicate that a holder has lost faith in Bitcoin. If they are still in possession of a huge pile of BTC, it could simply be to do with debt repayments, liquidity needs or other financial obligations.

The broader perspective holds far more relevance to me than a single trade. Only until we have a persistent and very large sale from a holder should we even begin to think that this is a sign of the start of a trend reversal. The market always has short-term volatility, but one sale simply would not change the overall Bitcoin narrative in my estimation.

Therefore, I would advise the market to look at the larger picture rather than overreact to one sale.

[Ishicryptic]

This is a nothing burger news implying that this has no short term impact and no long term impact(most likely) on the crypto market. They still hold over 840 grand BTC totalling billions of dollars which is why this is a small move by them IMO.

Seems that they wanted to take care of certain debt obligations and some other stuff due to which they went ahead with this move. All is well with the crypto market people.

I do agree with the statement that this should not be used as a bearish signal of magnitude. A partial sale, especially of the holdings that are comparatively small, should not directly indicate that a holder has lost faith in Bitcoin. If they are still in possession of a huge pile of BTC, it could simply be to do with debt repayments, liquidity needs or other financial obligations.

The broader perspective holds far more relevance to me than a single trade. Only until we have a persistent and very large sale from a holder should we even begin to think that this is a sign of the start of a trend reversal. The market always has short-term volatility, but one sale simply would not change the overall Bitcoin narrative in my estimation.

Therefore, I would advise the market to look at the larger picture rather than overreact to one sale.

No retail investors and institutions are happy to sell at a lose so clearly Strategy's sell of their Bitcoin in this bearish season was with very good reason, if it were in bull run we would have perhaps argued otherwise, as much as a large amount of their Bitcoin is still intact we shouldn't see them as wanting to exit the Bitcoin market. I still believe in Strategy's long term goal of accumulation and hold of Bitcoin and as long as they don't have any emergency reasons to sell off especially at a lose they will continue to be one of the strongest institutions that holds and believes in the potentials of Bitcoin. As for how the market would react to future news of their sell of Bitcoin, I believe that many of us have gotten over the initial shock after their first announcement to sell after Saylor's earlier stance of not selling their Bitcoin. One thing is for sure that Bitcoin market always recovers no matter the level of dip and that is why we are still hear buying the dip.

[Qastessa]

They have sold 6,916 btc since June until the most recent one yesterday, don't know if the sale was the last one, but they still hold more than 800,000 btc at the moment, yes, it can be said that it is a forced sale from them, because it sells when the market is bearish, but I think they are not at a loss considering that they started investing bitcoin since 2020. What is clear, I think we take advantage of this momentum to continue to accumulate.

As long as they have to keep paying their investors, they will have to keep selling as well. They can't get more money since it is the bear market, and because it is a slow market for them to make a profit, that means they are going to have to keep on selling more and more bitcoin to pay for the people. Good news for them: while this does make their treasury smaller, it is also worth noting that they have something like 830 THOUSAND bitcoins; that is not a small number.

I mean, they have survived a whole year of bad business with just less than 10k, and they have 830k, so imagine how long they can survive if that means what it means. I am not going to act as if I know everything about their business; I do not. Maybe they will have to ramp up the sales and do something else. But that doesn't change the fact that they have a lot and there isn't really anything that they should be worried about in the short term; maybe in the future there could be some issues.

[STT]

The small scale of selling doesn't matter by itself even if it was sold at a loss, what really matters further out is the trend but also the perception on selling BTC into weakness rather then buying the lows.
   I really don't think the company method is a failure but it could do harm via perception of being incorrect, just the misunderstanding could be enough to make the whole deal a net negative for the company overall.

I can see what he is attempting to do which is make a liquid situation where the short term obligation of serving the yield on the preference shares is out weighed by the benefits of the company being able to buy more BTC for the long term.  However until BTC goes back up it does look bad so I hope that negative perception alone doesn't do too much harm.
  Generally I fear companies with their borrowed money and so on being involved with BTC but we had FIAT mixed into Bitcoin for a while now and its just volatility that has to be dealt with while engaging the wider world and its currency of course.

[asriloni]

Already predicted Saylor's scheme would not be sustainable for long term. He's now getting trapped in the middle between his stock and BTC. When he buys btc, his stock is gonna decline more, but when he turned it around to buy back his tock, then he sold his btc at a lost.

This is basically a what we called it as a double edge sword. He's also not bought a single bitcoin for seven weeks. He seems aware if he mde a mistake, and it's too late for him to go out.

This is why i don't think he will be buying bitcoin again even if he has enough cash to cover dividend for several years. He has to change his business mechanism before it's too late.

[Barcode_]

Actually I felt it is pretty risky for investors to buy MicroStrategy stocks in the USA stock market, MicroStrategy are heavily invested in bitcoins mainly by using shareholders funds who bought their company stocks on the stock market. Once the bitcoin price falls below the average buying price MicroStrategy pays for, the company will basically report a loss in their financial report and the stock price of the company are highly likely to tumble on the stock market. If investors are interested to invest into bitcoin for the long term, they might as well buy bitcoin on their own and keep all of the bitcoins in a cold wallet, as MicroStrategy could make the decision to sell their bitcoins at a loss without the consent of their shareholders.

[avp2306]

Actually I felt it is pretty risky for investors to buy MicroStrategy stocks in the USA stock market, MicroStrategy are heavily invested in bitcoins mainly by using shareholders funds who bought their company stocks on the stock market. Once the bitcoin price falls below the average buying price MicroStrategy pays for, the company will basically report a loss in their financial report and the stock price of the company are highly likely to tumble on the stock market. If investors are interested to invest into bitcoin for the long term, they might as well buy bitcoin on their own and keep all of the bitcoins in a cold wallet, as MicroStrategy could make the decision to sell their bitcoins at a loss without the consent of their shareholders.

For me investors are just making their life so complicated by investing on $STRC or any stocks offered by Strategy. They just leverage their investment on Bitcoin, so if people think about this things for sure that they realize that they don't need this company. Because they can invest directly on Bitcoin.

If they continue to believe companies like Strategy, those investors are exposing themselves on two risk. The volatility of Bitcoin or the possibilities that there's something bad will going to happen with Strategy.

So best to buy directly and hide their accumulated funds on their own self custody wallets.

[Judith87403]

Given that Strategy has made its reputation with massive Bitcoin buying; a sale of 1,638 Bitcoin for around $105M warrants a close watch. The sale purportedly occurred below average cost Basis and proceeds are being used to redeem preferred shares, instead of buying Bitcoin. The more significant issue here however, not only with the volume of BTC, but with the strategy itself; we haven't seen similar large scale selling from the company before this as they've always been an incredibly bullish holder.

Having a reputation of massive buying do not mean that Strategy don't have an intention to sell part of their Bitcoin in the future, afterall what they have sold so far is just little of what they hold. Strategy is just selling just like every other person who sees the need to sell part of their Bitcoin to attend to something else that is important to them so we shouldn't be moved that they are selling. Of course, sometimes when you are left with no choice you can sell below the average price you bought but if you still hold the higher percentage of your Bitcoin, it is possible to recover those losses that resulted from selling below average price. Strategy only need the price to get back to the previous ATH of bitcoin and they will recover all they have lost and still make a lot of profits untop. I know they broke their never sell steak but circumstances can lead them to do that so we should not question their decision.

[STT]

MSTR is kinda useful in a few places as being such a proxy for Bitcoin in accounts that wont allow holding the outright resource.   It could be, probably is being used as a hedge by a few people who dont want to sell or move BTC and incur taxes.
  Things were much simpler when nobody cared about Bitcoin but with success comes various worries and paper troubles hence I do guess MSTR carries on with a use in the market even if Im not wildly bullish about them in general.

[Churchillvv]

MSTR is kinda useful in a few places as being such a proxy for Bitcoin in accounts that wont allow holding the outright resource.   It could be, probably is being used as a hedge by a few people who dont want to sell or move BTC and incur taxes.
  Things were much simpler when nobody cared about Bitcoin but with success comes various worries and paper troubles hence I do guess MSTR carries on with a use in the market even if Im not wildly bullish about them in general.

I also thought about this several times and I think the impression MSTR has created leaves the table to discuss them all the time with what ever moves they make as a proxy to bitcoin however, personally I don’t really buy the idea and I prefer old bitcoin with no ties and less paper works, I agree with you that the sales could be a tax invasion from some people but made more legit than normal.

[Faisal2202]

They own these clienteles, now they're trying to own some bitcoiners by igniting dramas  and getting microstrategy a bigger audience. Fewer bitcoiners knew so much about MSTR until the company turned whales. Talking about whales remember that in the past when a whale makes a big sell it stayed anonymous, the conversation was always about who must have done this, and why did they choose to sell 100BTC in the bear market. These companies must have watched and analyzed how bitcoiners talk to some extent about seeing an anonymous person selling a huge amount of bitcoin. 

Brother you made a good point, that they must have done all this drama, to get all the attention they could and they definitely have succeeded in that.

It reminded me of all those theories that social media people make that they ran this campaign not to target adults but to kids, X company ran Y campaign for this purpose to play a long game which will make them famous in the future not now if.

So all that can be true with these companies, don't know I can't think that far with that accuracy, I am not that clever haha, my father used to say to me you are not as clever as the world is, you have to be one. haha, well that's irrelevant to the topic.

But I still remember that whales can make us go insane with their most unpredictable moves and they still make such moves, the MSTR selling BTC in a bear market at a loss is one of them.