Crypto06 June, 20263 min read
Bitcoin Selloff Drags Strategy’s STRC to Record Lows After Strategy Sells 32 Bitcoin
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Bitcoin dropped to about $60,000, briefly hitting $59,099.25. Strategy sold a portion of Bitcoin, signaling potential further sales.
Bitcoin slides on Strategy
Bitcoin’s selloff dragged the broader crypto market lower as Strategy’s STRC sank to record lows, with STRC falling to an intraday low of $90.40 before recovering near $93.40, according to Yahoo Finance data. The market pressure followed Bitcoin briefly dropping below $60,000, reaching its lowest level since October 2024 before rebounding in the afternoon, while Bitcoin was trading near $62,000 at press time. CoinGlass data showed about $1.72 billion in crypto liquidations over 24 hours, including roughly $1.41 billion in long positions and $305 million in short positions, as leveraged traders were caught by the rapid move lower.
Strategy shares also extended their decline, falling to an intraday low near $114, their lowest level since February 2026, before recovering to around $120 in Friday afternoon trading. The drop came after Strategy disclosed it sold 32 Bitcoin between May 26 and May 31 for about $2.5 million to fund preferred stock distributions, marking its first Bitcoin sale in years.
Deposits spark exchange fears
Strategy moved 411 Bitcoin (BTC) to Coinbase Prime while the price traded below $73,000, renewing selling concerns as the company led by Michael Saylor transferred coins to an exchange platform. The transfer included a deposit of 411.48 BTC worth $30.3 million into Coinbase Prime, described as the first direct transfer to an exchange in nearly two years. Blockchain explorers logged two nearly equal transfers of 205.3 and 206.2 BTC, sent moments after a small 0.0241 BTC test transaction worth no more than about $2,000.
In its Q1 earnings call, Saylor said the company could sell part of its Bitcoin to fund dividends and reassure holders of its preferred stock, a clear departure from the company’s long-standing pledge of never sell. The move also followed Strategy’s pause of Bitcoin buybacks and its use of cash to repurchase $1.5 billion of zero-interest convertible bonds due 2029, reducing total convertible debt to $6.7 billion from $8.2 billion.
Policy, ETFs, and outlook
Bitcoin fell below $81,000 on Thursday as markets stayed cautious while watching developments in negotiations between the United States and Iran, and the decline came as MicroStrategy announced it is studying the sale of part of its holdings to fund dividend payments. Bitcoin dropped 0.7% to $80,951.30 after a strong rally in April of about 12%, supported by rising optimism in global markets about a cooling of geopolitical tensions between the United States and Iran. In parallel, withdrawals from Bitcoin ETFs have exceeded $4 billion since mid-May, described as the longest outflow of funds since these investment products were launched, while one report said ETF flows collectively eked out a net inflow of $3 million on Thursday.
Charles-Henry Monchau, chief investment officer at Syz Group, said bitcoin’s weekly decline was driven by a combination of Strategy’s selling and a crowding-out effect from hot money chasing other assets. Despite the downturn, Strivechief executive Matt Cole told CNBC’s Squawk Box Europe that bitcoin’s fundamentals have “never been better,” arguing that “This is the fifth time that bitcoin has been at its 200-week moving average” and that the prior instances were “the perfect time to buy the dip.”