Bitcoin Price Falls Below $64,000 Amid Sale of 1,690 BTC as Part of Strategy
Bitcoin's price fell below $64,000 on Monday, interrupting a multi-day period of minor gains. This decline occurred after the major Bitcoin treasury firm, Strategy, sold 1,690 BTC to fund a preferred stock buyback. The sale, executed at an average price of $64,262 per coin, generated $108.6 million, which was used to repurchase 1,152,020 shares of STRC. The drop saw Bitcoin's market cap shrink by over $20 billion and triggered the liquidation of over $47 million in leveraged long positions within 24 hours.
The move was framed by Strategy's CEO, Fong Le, as part of its disciplined "Digital Credit Capital Framework," aimed at strengthening the company's U.S. dollar reserves and duration. However, critics like Peter Schiff questioned the logic of buying or holding the company's common stock, labeling it a "Ponzi scheme." In response, macro strategist Dan Hillary defended the action as prudent balance sheet optimization. He argued that selling a small portion of Bitcoin to repurchase discounted shares or shore up reserves for preferred dividends is a capital management step that reduces long-term capital costs and enhances financial resilience, prioritizing long-term shareholder value over short-term Bitcoin-per-share metrics.
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