When the largest corporate holder of a scarce ******* et says that it has new rules for when it will sell some of that ******* et, the rest of the ******* et's holders tend to pay rapt attention. On June 29, Strategy (NASDAQ: MSTR) published a new Digital Credit Capital Framework wherein it reserves the right to sell as much as $1.25 billion in Bitcoin (CRYPTO: BTC), with the proceeds of any such sales being earmarked for paying dividends, interest expenses, and for its stock buybacks.
Bitcoin fell by 2.2% in the 24 hours after the announcement. Should Bitcoin holders be looking for the sell ******* on?
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Strategy holds about 4% of all Bitcoin that will ever exist, making it the biggest corporate holder by far.
The $1.25 billion authorization for potential future Bitcoin sales is worth just a smidgen of its ******* d of $50.6 billion at current prices. In other words, even if the company sold the full authorized amount at once, it's unlikely that it would flood the market with supply and force prices down. So, right off the bat, there's no five-alarm fire here that would make it worth dumping the coin in a hurry.