On July 6, Strategy sold another batch of BTC▲$62,630.00. The move drew criticism from crypto industry leaders. We break down the details.
Strategy sold 3,588 BTC for $216M to pay dividends on its preferred shares–its second sale in a month after a multi-year pause. The company still holds 843,775 BTC and $2.55B in cash reserves.
Hot topic: Grayscale Says Strategy Bitcoin Sales Could Help BTC Find Bottom
Industry participants see this as a turning point. Saylor’s model of endless bitcoin (BTC) accumulation through capital raising is no longer working. Bitwise CIO Matt Hougan said the era of Strategy as the dominant bitcoin buyer is over.
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‘End of an Era’: Why the Industry Says Saylor’s Model Is Broken
Hougan said that after STRC preferred shares fell below $100, “Strategy will play a less important role in the next cycle.” He compared the current crisis to the 2021 unwinding of Grayscale’s GBTC premium, calling it “classic end-of-cycle dynamics.” In his view, future demand drivers will be major investment banks, pension funds, and sovereign wealth funds–not one corporation.
Peter Schiff said the bitcoin sale has fundamentally changed Strategy’s business model. The company once raised capital through share sales and debt issuance to buy bitcoin. Now it’s being forced to liquidate reserves to pay shareholders.
He warned that if the company keeps selling at depressed prices, losses could multiply.
Strive CEO Matt Cole said the STRC situation drew too much attention and pushed bitcoin lower than it should have gone. Still, he acknowledged that Strategy’s 4% share of BTC supply isn’t considered critical in traditional finance–SEC disclosure triggers only above 5%.
Strategy Will Remain a Buyer — But No Longer the Main One
Despite the pessimism, analysts note Strategy won’t become a net seller. The company has $52B in liquid assets against $7B in debt. For it to enter a danger zone, bitcoin would need to fall another 70% to $18,500. Hougan emphasized Strategy will remain a net buyer, but its influence on pricing will weaken.
Bernstein also believes a large forced sale is unlikely. Strategy’s debt obligations are only 13% of its bitcoin collateral value, with the next principal payment due in Q3 2028. The company could sell up to $1.25B in BTC to fund dividends, but these mechanisms make a systemic dump unlikely.
Learn more: What Does Strategy Do? How Michael Saylor Built a Bitcoin Corporate Empire
