Is Strategy Selling Bitcoin Again? MSTR Stock Falls After 299 BTC Reportedly Moves To New Custody Wallet

• A wallet associated with Strategy reportedly transferred 299.843 BTC to a fresh address, according to Lookonchain.
• The transfer fueled speculation among crypto traders that another sale could follow, although there is no evidence the Bitcoin has been sold. 
• This followed Strategy’s sale of 3,588 BTC worth around $216 million in July, the last major on-chain movement of its holdings.

A wallet reportedly linked to Michael Saylor's Strategy (MSTR) transferred 299.843 Bitcoin (BTC), valued at nearly $19 million, to a new address, according to Lookonchain, sparking fresh speculation that the company could be preparing another Bitcoin sale. 

Bitcoin was moved from Strategy’s primary holding address to a newly created wallet with no prior transaction history, which blockchain trackers believe may be associated with its custodian. The last time Strategy moved Bitcoin was from July 1 to July 5, when the company sold 3,588 BTC worth $216 million, the on-chain tracker noted. "Is Michael Saylor's Strategy selling BTC again?" Lookonchain wrote. 

Tracing to Arkham’s wallet source, five months ago, Anchorage Digital had sent $20.39 million in Bitcoin to the Strategy-owned wallet, with the custody platform receiving $18.19 million back as change. 

MSTR stock was down over 1% during pre-market trading hours. On Stocktwits, retail sentiment around MSTR remained in the ‘bearish’' zone, while chatter stayed at ‘normal’' levels over the past day.

Q2 Losses Mount 

The transfer came days after Strategy reported a $24.45 per share GAAP loss in the second quarter, driven by an $8.32 billion unrealized loss on its Bitcoin holdings under fair-value accounting rules. 

Saylor said the loss was the result of a “meaningful Bitcoin price decline” and “muted Bitcoin sentiment and market skepticism.” He said it was a result of macroeconomic headwinds, not structural problems with Bitcoin. 

In comparison, the firm had posted a larger operating loss of $14.5 billion in the first quarter. Barclays analyst Nik Cremo said on Monday that the firm cut Strategy's price target to $125 from $130 and while maintaining  an 'Overweight' rating on the shares after the Q2 report. Cremo believes that management is taking the right steps to navigate a Bitcoin bear market.

Why Are Traders Watching

Strategy has also restrained Bitcoin buying for three consecutive weeks, raising more than $1.27 billion via at-the-market stock sales and directing the proceeds to its USD Reserve. Additionally, the firm has sold Bitcoin in recent months to fund preferred stock dividends on its STRC instrument, which requires regular cash payouts. 

Strategy’s capital framework, approved in late June, formally permits the selective sale of up to $1.25 billion of its holdings, ending the four-year "never sell" doctrine that had defined Strategy's Bitcoin strategy.

Bitcoin's price was trading down by 0.7% during the past 24 hours. On Stocktwits, retail sentiment around Bitcoin remained in the 'bearish' zone, while chatter stayed at 'normal' levels over the past day.

MSTR Stock: Retail Investors Remain Divided

However, not all were convinced that Saylor would be selling more Bitcoin. On Stocktwits, one user said that “Saylor shutting down those BTC sale rumors overnight,” expecting the firm to buy more. 

Some users pointed out that Saylor changed his net-buyer stance to a net-seller. 

Read also: Coldcard Bitcoin Hack May Not Be Over Yet: Willy Woo Sees Slim Recovery Odds As Analysts Warn Of Fourth Attack

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