Michael Saylor's Strategy has sold bitcoin for the first time in six months, ending a major accumulation phase as many firms retrench amid market declines.
Michael Saylor's firm, Strategy (MSTR), has made headlines by selling bitcoin for the first time since December 2022, signaling the end of a significant accumulation phase. This action occurs as numerous digital asset treasury firms are either pulling back on purchases or liquidating their holdings in response to challenging market conditions since last October.
End of Accumulation for Strategy
Strategy sold about $2.5 million worth of bitcoin, marking a significant shift for a company that had embraced a buy-and-hold investment strategy. The move reflects the broader difficulties that firms aiming to replicate Saylor's approach are currently facing.
In the past year, many companies had raised capital through equity and debt to invest in cryptocurrencies such as bitcoin and ether (ETH), benefiting from rising prices. However, as the market peaked in October, a subsequent decline in token values has hindered capital-raising efforts, with some firms experiencing stock price declines of over 90%. This environment has led many to stop buying digital assets, with some even choosing to sell.
While Strategy maintained its buying strategy up until recently, signs of a sale emerged in early May, culminating in the June 1 sale. This development raises questions about the sustainability of treasury firms, as fewer active buyers remain in the market.
Remaining Buyers in the Market
Despite the challenges, some companies still continue to make purchases. Bitmine (BMNR), a notable player in the Ethereum space, recently acquired around $53 million of ETH, bringing its total holdings to over 5.4 million ETH, making it the largest corporate holder of the asset. Another Ethereum-focused firm, Bit Digital (BTBT), also returned to the market in May with a $20 million purchase of ETH — its first since last October.
Strive (ASST) actively bought approximately 1,944 BTC in May for around $150 million, while Japan's Metaplanet purchased 5,075 BTC in April. Hyperliquid Strategies (PURR) also reported a significant $216 million investment in HYPE tokens from December to April, with their value since doubling.
Despite its recent selling activity, Strategy remains a major player in bitcoin demand, having acquired over 25,000 BTC for more than $2 billion in May alone.
Firms Reducing Crypto Holdings
Conversely, many firms have been divesting their cryptocurrency assets. Nakamoto Holdings (NAKA) sold 284 BTC in March, representing 5% of its total assets. Empery Digital liquidated 370 BTC in April to cover a term loan, while Genius Group (GNS) sold its last 84 BTC to reduce $8.5 million in debt.
Additionally, some firms have entirely abandoned the treasury model. Forum Markets, previously known as ETHZilla, has pivoted to tokenization after selling roughly $114 million in ether. VivoPower is also moving towards a model focused on data centers and AI infrastructure, pulling out of XRP investments.
