Bitcoin slides to three-week low after Strategy plans multi-billion dollar sell-off

Bitcoin fell to its lowest price since early July, slipping to about $62,700 after Strategy announced it may sell up to $5 billion of the cryptocurrency.

Bitcoin’s market value slipped to a three-week trough, trading near $62,700 after the cryptocurrency’s biggest institutional holder, Strategy, disclosed plans to offload as much as $5 billion worth of bitcoin. The move came on the back of Strategy’s quarterly report, which posted revenue of $122.4 million, just shy of the $122.9 million consensus estimate. During the earnings call, CEO Phong Le explained that selling bitcoin would allow the firm to strengthen its cash position and potentially finance stock buybacks, though founder Michael Saylor cautioned the eventual sale size could exceed the initial figure.

The announcement triggered a 3.1 % drop in bitcoin’s price and a 7.3 % decline in Strategy’s stock, pushing the company’s year-to-date loss to roughly 42 %. Strategy’s bitcoin holdings now total about 843,775 coins, valued at $63.8 billion, far surpassing its $1.4 billion cash balance. JPMorgan analysts have warned that bolstering cash reserves would restore confidence among investors.