Bitcoin experienced a decline, reaching a low of $61,400 overnight before recovering slightly to $62,400 in premarket trading on Thursday. This represents a 7% decrease over the past 24 hours and a 14% decline over the course of the week. Strategy’s performance, linked to Michael Saylor, has also seen a drop of nearly 15% within five trading days.
This downturn has placed Bitcoin into a technical bear market, now down 22.7% from its four-week peak, effectively erasing more than $600 billion in overall cryptocurrency market capitalization.
At the forefront of this discourse is Michael Saylor, Executive Chairman of Strategy, who shared his insights on the recent selloff via a post on X.
“Capital markets are funding the AI buildout at historic scale: ~$400B over 6 months,” Saylor commented. “Bitcoin ETFs have encountered approximately $4B in outflows since May 14, which has exerted downward pressure on BTC. This is a capital rotation, not a Bitcoin impairment. Volatility creates opportunity.”
Saylor posits that institutional investors are reallocating funds from Bitcoin towards artificial intelligence infrastructure, framing this as a strategic trade rather than a judgment on the asset’s value. Supporting his claims, Wall Street analysts project combined hyperscaler capital expenditures to exceed $600 billion in 2026, with an estimated $450 billion anticipated to be invested in AI-related hardware, servers, and networking equipment.
Saylor’s Recent Bitcoin Sale
However, Saylor’s assertions were accompanied by a noteworthy caveat that many market observers found difficult to overlook. Strategy, recognized as the world’s largest corporate holder of Bitcoin with 843,706 BTC, reported through a Form 8-K filed on June 1 that it sold 32 Bitcoin between May 26 and May 31 at an average price of $77,135 per coin, netting $2.5 million after expenses. The stated intention behind this sale was to facilitate dividend payments on the company’s STRC preferred shares.
In monetary terms, this sale represents a minor adjustment within an overall position valued at approximately $61 billion. Psychologically, however, the market interpreted this action as a deviation from Saylor’s established persona as a resolute Bitcoin proponent.
Notably, Strategy had not divested any Bitcoin since late 2022, with Saylor’s commitment to accumulating Bitcoin becoming a significant market indicator. Analysts indicated that this recent move may have exacerbated bearish sentiment and intensified the price decline.
In the weeks leading up to the sale, Strategy also shifted its strategy from acquiring Bitcoin to enhancing its balance sheet, having repurchased $1.5 billion of its 0% convertible notes due in 2029 for approximately $1.38 billion in cash—an 8% discount—thereby reducing its debt obligations by around $120 million.
This adjustment lowered the company’s outstanding convertible debt from $8.2 billion to $6.7 billion while maintaining an $871 million cash reserve. At that juncture, Strategy held 843,738 BTC and expressed intentions to rebuild its liquidity through future capital raises.
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