Arkham Intelligence has reported a significant decrease in holdings for MSTR, which saw its Bitcoin stash drop from over 484,000 BTC to 437,431 BTC within a 24-hour period. This decline has raised alarm among traders who are speculating that the company may be selling Bitcoin for the first time in nearly two years, especially following its transfer of more than 47,000 BTC.
In pre-market trading on Friday, MSTR stock appeared headed for a one-year low, and the company has been heavily discussed by traders on platforms like Stocktwits. Concerns are mounting that the move could indicate potential sales, leading to a downward trend in market sentiment. This marked the first decrease in Bitcoin holdings since July 2023, following a period of consistent accumulation.
To ease concerns, Executive Chairman Michael Saylor took to X to share a post that included the word ‘HODL’ alongside an image of a burning ship. This seemed to indicate that the recent movements might be transfers to new wallets rather than a liquidation of assets. The last time MSTR engaged in selling Bitcoin was back in December 2022, during which it offloaded 704 BTC at a price of approximately $17,800 each.
Despite Saylor’s assurances, MSTR’s stock saw a marked drop of as much as 7% in early trading. Retail sentiment regarding the stock shifted from ‘bullish’ to ‘neutral’ despite high levels of discussion on social media platforms. This sentiment came in conjunction with a decline in Bitcoin’s price, which fell below $96,000—its lowest point since May—resulting in a 6.7% reduction in the value of MSTR’s remaining holdings, now estimated at around $42 billion.
Complicating matters is the ongoing confusion regarding the nature of MSTR’s Bitcoin transactions, as the company’s official dashboard still indicates it holds over 640,000 BTC with a modified net asset value (mNAV) of 1.23. However, online trader and analyst Derivatives Monke pointed out that MSTR’s shares have dipped below 1 NAV to 0.96, suggesting that the asset value is dangerously close to the company’s total debt. This has prompted concerns about a “death spiral” for MSTR and potential forced selling of its Bitcoin.
Overall, MSTR’s stock has suffered a significant decline this year, have dropped over 30% since January and over 43% in the last 23 months. Meanwhile, the broader crypto market continues to react to price fluctuations, including a recent selloff that resulted in $1.1 billion in liquidations across various cryptocurrencies.
