Selling at a loss of $55 million—Strategy’s “never sell coins” image has completely collapsed today

That man who said “Bitcoin is an exit, not an entrance” just slapped himself with the loudest slap he could.

On July 6, Michael Saylor posted a tweet that was completely the opposite of his persona from the past six years—Strategy sold 3,588 BTC.

You didn’t read it wrong. The man who had etched “never sell” into the company’s DNA and worshiped Bitcoin as a faith for six years sold.

Not the “desensitization test” of 32 coins—3,588 coins. It sold 32 coins at the end of May, and 35 days later surged to a hundred times that. Average selling price: $60,197.

And his average cost basis is $75,651.

Losing $15k per coin, totaling a loss of $55 million.

Selling even when losing money.

Brothers, this isn’t “flexibly adjusting positions.” This is faith being securitized—and the interest payment date has arrived.

## 1. First, take a look at how explosive this is

Who is Strategy? The world’s largest corporate Bitcoin holder, holding 843,775 BTC, which is about 4% of the global total.

For the past six years, this guy’s business model has had only one word: buy.

Issue stock → buy Bitcoin → stock price rises → issue more stock → buy more Bitcoin. A perfect closed-loop leverage flywheel.

As long as the market is willing to give MSTR’s stock a premium (mNAV > 1), this flywheel can keep turning forever.

“Never sell” isn’t sentiment—it’s the lifeblood of this business.

So what about now?

mNAV has fallen below 1. The market’s valuation of Strategy is already lower than the value of the Bitcoin it holds. In other words, the capital markets think that “handing Bitcoin over to Strategy to manage” is a negative asset.

All three sets of gears in the flywheel are jammed solid.

First: the financing channel is blocked.

STRC preferred stock, designed to be anchored to a $100 par value to facilitate continuous fundraising. Now you can buy it on the secondary market for $75, and no one will subscribe to new shares at $100. The preferred-stock financing channel is effectively shut.

Second: the premium is gone.

When mNAV falls below 1, issuing additional common shares to buy coins is no longer worth it. For every share issued, the Bitcoin portion held by existing shareholders gets diluted.

Third: dividends must be paid, but there isn’t enough cash.

Strategy’s annual preferred stock dividend expense alone is as high as $1.5 billion. The cash flow from the software business? It’s nowhere near enough.

All three conditions fail at the same time. The flywheel turns into a meat grinder.

## 2. Why do we say this changes BTC’s long-term narrative?

The logic of “institutions never sell” used to be one of the most important psychological pillars in Bitcoin bull markets.

Think about it—how many people in the past few years have held their positions based on the line: “If Strategy doesn’t sell, why should I be afraid”?

Now that pillar has cracked.

Jiang Zhuo’er put it bluntly: “The promise of never selling coins has broken.”

And pay attention to one detail—Strategy apparently still has $2.55 billion in cash reserves on its books, enough to cover 17.6 months of interest payments.

If it’s not a cash shortage, why sell at a loss?

Because no matter how big the faith is, it can’t be bigger than the math of capital structure.

Saylor himself explained it clearly on the Q1 earnings call: when mNAV is below 1.22x, issuing shares is harm to existing shareholders. Selling coins to pay interest is actually a better solution—because it increases Bitcoin per share.

Put into plain language:

“When your stock isn’t worth much, selling coins is more cost-effective than selling stock.”

That’s the price of writing “never sell” into the company charter—when the math no longer supports the narrative, the narrative has to make way for the math.

## 3. What is happening in the market?

As soon as the news broke, Bitcoin dropped straight from the overnight high of $64,433, at one point touching $61,950. In 24 hours, nearly $500 million in leveraged positions were liquidated.

Fear Index at 28—market sentiment is still trapped in fear.

But it’s not that simple.

On the other side, ETFs are flowing back.

On July 2, Bitcoin ETFs ended 10 consecutive days of outflows, with a single-day net inflow of $222 million. On July 6, BlackRock’s IBIT pulled in $209 million in a single day.

On the other side, new buyers are stepping in.

Nasdaq-listed company Empery Digital bought 1,200 BTC in the past 6 days, worth approximately $72.65 million.

One side is the founder of “never sell” cutting losses; the other side is fresh capital coming in to bottom-fish.

Bulls and bears are battling head-to-head, and the confrontation is unusually intense.

## 4. What will happen next?

Short term:

Strategy still has $1.25 billion of the unused “BTC monetization plan” quota. The 20,000 BTC sell quota approved by the shareholders’ meeting will likely be carried out in stages.

Jiang Zhuo’er even predicts that, during the bull market phase, there could be sell-offs on the scale of hundreds of thousands of coins.

As long as Bitcoin’s price stays below the average cost line of $75,651, the pressure for further selling objectively exists.

Long term:

The loosening of the “institutions never sell” narrative can’t be repaired in a day or two.

But having said that—843,775 BTC are still in Strategy’s hands. The 3,588 coins being sold account for only 0.4% of total holdings.

The essence of this round of selling is to use Bitcoin’s liquidity to fill the holes in the capital structure during the gap when the flywheel is stopped.

Not a full liquidation—more like a blood transfusion.

Last sentence

“The moment faith is securitized, Bitcoin is no longer faith—it becomes a bill.”

With a $55 million loss, Saylor gave the entire market a lesson:

No “never sell” is unbreakable. When the cost of financing exceeds the cost of selling coins, even the most devout Holder will pick up a calculator#GUSD年化升至3.8% #Strategy上周减持3588枚BTC #GT二季度销毁257万枚 $ETH $BTC $SOL