Bitcoin dropped roughly 10% in early June, falling from $74,000 to $65,400, as the market grappled with the fallout from Strategy's first BTC sale since 2022.
The Bitcoin treasury firm, led by Michael Saylor, confirmed in an SEC filing that it had sold 32 BTC to cover dividend payments. The move reversed the company's long-held 'never sell' policy, sparking heated debate and triggering $1.76 billion in crypto liquidations.
Critics called the timing a tactical blunder, with crypto economist Alex Kruger saying Saylor was 'cornered' and should have sold more BTC if he was going to sell at all.
STRC, Strategy's preferred perpetual stock, dropped from its $100 par value to $94.84. The company's common stock MSTR fell 9.6% to $134, then slipped another 4% to $130.
Some analysts argue the situation is manageable. Bitrue Research's Andri Fauzan Adziima said institutional investors view it as 'navigable leverage friction rather than a death spiral.'
To rebuild its cash reserves without further large-scale Bitcoin sales, Adziima expects Strategy will likely raise equity through targeted MSTR offerings and adjust STRC dividend payouts.
Bitcoin traded near $65,560, down 3.1% over the past 24 hours, as prediction markets gave a 58% chance BTC could drop to $55,000.