Strategy's $216M Bitcoin dip sale leaves doomers eating $BTC dust 😬

Strategy has disclosed the sale of approximately $216 million worth of Bitcoin as the first stage of a previously announced $1.25 billion BTC disposal plan, according to Grayscale Research. In a report published this week, Grayscale's Head of Research Zach Pandl stated, "The rebound in the price of STRC suggests investors are now more confident about the instrument. Strategy is selling more Bitcoin. But this will restore confidence in its financing structure and help Bitcoin find a more durable bottom, in our view." The disclosure arrived on Monday and, contrary to bearish predictions, did not trigger the kind of forced-selling reaction that has accompanied prior Strategy BTC sales this quarter.

The firm's preferred stock, Stretch (STRC), climbed above $90 for the first time since the 22nd of June after the announcement, recovering from a June de-pegging from its $100-parity level. The de-pegging had followed the partial depletion of an initial USD reserve used to retire convertible debt, raising concerns about how the company would meet dividend obligations as the downturn extended. The newly outlined $1.25 billion BTC sale is intended to replenish buffers for those obligations, with the $216 million tranche representing the opening move of that program.

Market reaction differed sharply from the first week of June, when BTC fell more than 20% to $59K after Strategy reported selling 32 BTC. On Monday, BTC moved lower before paring losses and closing up 0.6% on the day. Analyst James Van Straten commented, "When bad news no longer pushes prices lower, the bottom may be in." JPMorgan and Galaxy Research had publicly cautioned against the BTC-sale approach; JPMorgan recommended expanding the USD reserve to three years of dividend coverage by selling MSTR shares, while Galaxy Research argued that divesting BTC would not resolve the company's "structural issues" and could weigh on both STRC and MSTR.

Peter Schiff has maintained that Strategy is realizing losses on the sale, estimating that the company is offloading BTC below