Bitcoin Could See a Much Larger Sell-off Than Expected: VanEck Head of Research Explains

MicroStrategy’s $135 million Bitcoin (BTC) sale last week was not included in the company’s $1.25 billion sell-off plan.

As one of the largest institutional players in the cryptocurrency market, MicroStrategy continues to remain the focus of investors due to its management of Bitcoin (BTC) assets. Matthew Sigel, VanEck’s Head of Digital Assets Research, analyzed the company’s recent financial moves and shared key data, shedding light on sell-off details that have sparked curiosity in the market.

According to information shared by Sigel, the $135 million Bitcoin sale last week was not considered part of the company’s previously announced $1.25 billion liquidation program. This suggests that MicroStrategy’s actual selling capacity could be far greater than the $1.25 billion limit disclosed to the market.

MicroStrategy’s Bitcoin Selling Capacity Exceeds Expectations

According to the company’s current financial filings, the program in question only covers sales intended to bolster its U.S. dollar reserves. The transaction carried out last week was used directly for preferred stock dividend payments and was therefore kept entirely outside of the program. Data shared as of July 5 shows that the entire $1.25 billion limit is still available for use, and no expenditures have been made from this source yet.

Furthermore, it is stated that the company’s U.S. dollar reserve balance stands at $2.55 billion. The primary purpose of this reserve is defined as securing debt interest and dividend payments. These strategic moves by MicroStrategy clearly highlight the potential scale of selling pressure on the Bitcoin (BTC) price and the flexibility in the company’s financial management.