According to foreign media, Senior Trading Officer Peter Brandt argued that Strategy's reservation of legal space for the sale of up to $1.25 billion bitcoin, while not equal to the immediate sale of the currency, had changed the market's expectation of its “never selling” position. According to the article, this arrangement, if activated at low currency prices, could magnify the market ' s concern about subsequent erosion.

$1.25 billion or just the first round

The core judgement of Brandt is that this level is not necessarily sufficient to address the full financial pressure on Strategy. If companies continue to dispose of bitcoin to meet debt or financing costs, after the first round of sale, the market may be further concerned that more supplies enter the exchange.

The article mentions that the new capital framework introduced by the Strategy Board this week has formally allowed companies to sell some bitcoin in specific circumstances. This does not mean that Michael Saylor has decided to sell, but the market focus has shifted from “will it sell” to “may it sell under what conditions”.

There's a lot of concern about the debt overhang.

The data cited by external sources show that, with the fall of Bitcoin, Strategy held 84.77 million bitcoin with a large unrealized loss of over $14.3 billion. It was also reported that corporate equities had a discount of about 38 per cent on the value of their net encrypted assets and that the market value had fallen to $30.9 billion.

Debt stress is also one of the reasons Brandt warned. According to the article, Strategy continued to buy bitcoin through the issuance of debt instruments in the last round of cattle markets, while the repayment pressure on the relevant financing instruments rose after the currency price fell. Of these, the current rate of return on the STRD tool has risen to 18 per cent.

  • Bitcoin hold: 847,000
  • Unrealized losses: over $14.3 billion
  • Potential sales ceiling: $125.0 billion

Bitcoin is running low, zooming in.

At the time of publication, the price of bitcoin was approximately US$ 58,922. According to the article, the seller is still dominant and Bitcoin has fallen to a long-term support position of 200 week averages and market sentiment is weak.

Brandt argues that if Bitcoin were to lose the area around US$ 58,000, Strategy’s reserved sales mechanism could have shifted from a defensive arrangement to an actual source of pressure. Price volatility may be further amplified, especially in times of low liquidity during the summer, once large sales orders enter the exchange order book.

Overall, the focus of the commentary is not on the fact that Strategy has started selling currency, but on the fact that, for the first time, the market needs to carefully assess the possibility of its future sale of bitcoin and the pressure this expectation itself places on prices.