Strategy sells $216M in bitcoin as Bollinger turns bullish
Strategy sells 216M bitcoin—3,588 BTC worth roughly $216 million—to fund preferred-stock dividends and replenish cash reserves, cutting holdings to 843,775 BTC. Bitcoin dipped on the news but quickly rebounded above $63,500, while chart pioneer John Bollinger flagged a potential W-shaped reversal that could signal the bear market's end.
Key Takeaways
- Strategy sold 3,588 BTC for $216M between June 29 and July 5 to cover dividend payments on preferred shares.
- Bitcoin dipped to about $61,300 before rebounding; perpetual funding rates climbed to 9% on Monday.
- John Bollinger sees a W-shaped double bottom on BTC/USD charts, suggesting a possible trend break.
- Former Tether CIO Richard Heathcote is seeking to sell part of his 1.26% stake in the stablecoin issuer.
- Vitalik Buterin outlined a three-to-four-year Lean Ethereum upgrade plan focused on quantum safety and privacy.
Why did Strategy sell $216 million in Bitcoin?
Michael Saylor's Strategy sold 3,588 Bitcoin to fund preferred stock dividend payments and replenish its cash reserves, according to a Monday SEC 8-K filing. The sale totaled $216 million and reduced Strategy's treasury to 843,775 BTC.
The company executed two tranches: 1,363 BTC at an average of $59,256 between June 29 and 30, and 2,225 BTC at $60,773 between July 1 and July 5. The disposal followed Strategy's first reported sale of 32 Bitcoin in early June, its first since a 2022 tax-loss transaction.
Before the sale was disclosed, Bernstein analysts said Strategy was unlikely to be forced to liquidate holdings, citing strong liquidity and cash reserve coverage. The firm estimated Strategy had 17 months of cash to cover dividend obligations and interest payments.
Did Bitcoin recover after Strategy's sale?
Bitcoin sold off briefly after Strategy disclosed the sale, sliding to about $61,300 before rebounding above $63,500. The quick recovery suggests bulls absorbed the supply without triggering a prolonged liquidation cascade.
Perpetual futures funding rates jumped to 9% annualized on Monday, indicating more balanced leverage demand after negative funding over the weekend. The additional $216 million in cash also eased concerns about Strategy's ability to pay dividends and cover debt.
Still, derivatives markets remain cautious. Bitcoin options showed mild stress, and analysts note that sustained gains above $65,000 may require renewed spot ETF inflows. For more market moves, see our Fintech & Crypto Alerts coverage.
Is John Bollinger bullish on Bitcoin now?
John Bollinger, creator of the Bollinger Bands indicator, believes Bitcoin may be forming a W-shaped double bottom on BTC/USD charts. In Friday X posts, he noted that bullish patterns have repeatedly failed during the downtrend, then asked: "Will this W be the one that breaks the trend?"
W-shaped reversals feature two swing lows with a rejected rebound between them. Bollinger has been bullish on BTC for months and opened a long position via his Bitcoin investment vehicle in early May.
Despite his optimism, many market participants still expect a macro bottom in Q3 or later. An increasing number of on-chain indicators are flashing signals last seen during the 2022 bear market, according to Cointelegraph's Hodler's Digest.
What else moved crypto markets this week?
Ethereum co-founder Vitalik Buterin unveiled a Lean Ethereum strawmap prioritizing quantum resistance, scalability and privacy over the next three to four years. He compared the overhaul's scale to the 2022 Merge and said quantum-safe blob solutions have become urgent.
Former Tether CIO Richard Heathcote is seeking to sell part of his 1.26% stake in the stablecoin issuer, Bloomberg reported. Tether maintains it has no plans to go public, even as USDT faces delistings on MiCA-authorized European platforms including Revolut.
President Donald Trump defended earning about $1.4 billion from crypto ventures while in office, telling CNBC there was "nothing wrong" with the income. Senator Kirsten Gillibrand separately called for banning elected officials from issuing memecoins.