Bitcoin experienced a significant downturn, falling below $70,000 for the first time since early April. This decline followed the announcement from Strategy, the largest institutional holder of Bitcoin, regarding the sale of some of its tokens. Strategy’s move marked the company’s first Bitcoin sale in over three and a half years, triggering reactions in the cryptocurrency market.
On Tuesday morning, Bitcoin’s price briefly dipped to $69,690, reflecting a drop of more than 3.8% from the previous day. Although it later pared some of its losses, the world’s most prominent cryptocurrency remains more than 8.4% lower compared to its value at the beginning of the week. In contrast, other major cryptocurrencies such as Ether, Binance’s BNB, and XRP appeared largely unaffected, maintaining stable prices around $1,981, $681, and $1.26, respectively.
In an SEC filing on Monday, Strategy, previously known as MicroStrategy, revealed that it had sold 32 bitcoins during the last week of May to generate approximately $2.5 million intended for stockholder dividend payments. The tokens were sold at an average price of about $77,135 each. Following the announcement, Strategy’s stock experienced a decline of 5.85%.
This sale marks only the second time that Strategy has divested a portion of its Bitcoin holdings, with the last occurrence reported in December 2022. Despite this latest sale, the company continues to hold a substantial reserve of 843,706 bitcoins, acquired at an average price of $75,699, solidifying its position as the largest institutional Bitcoin holder.
Michael Saylor, the founder and CEO of Strategy, currently boasts a net worth of $4.5 billion, placing him as the 943rd richest individual globally, according to Forbes’ Real Time Billionaires list. However, the recent downturn in Strategy’s stock has led to a decrease in Saylor’s fortune by approximately $183 million.
