Key facts
- MicroStrategy's stock fell 9.15% on Tuesday.
- MicroStrategy sold 32 Bitcoin for $2.5 million.
- This is MicroStrategy's first net Bitcoin sale since December 2022.
- U.S. spot Bitcoin ETFs saw record outflows totaling $609.3 million in one session.
- Bitcoin's price dropped below $67,000 and later below $62,000, reaching a low of $61,463.22.
- Total outflows from U.S. spot Bitcoin ETFs reached $3.45 billion.
- A dispute exists on Polymarket over an $85 million bet regarding MicroStrategy's Bitcoin sale timing.
- Coinbase stock fell over 6% after Baird Equity Research lowered its price target.
- Baird Equity Research lowered Coinbase's price target to $142 from $160.
- A proposal for twice-monthly dividends for Digital Credit is in its final voting week.
MicroStrategy's stock (MSTR) saw a notable decline of 9.15% on Tuesday, bringing it close to its 52-week low, as the price of Bitcoin dipped below $67,000. The company executed a sale of 32 Bitcoin for $2.5 million, representing the first net reduction in its Bitcoin holdings since December 2022. This transaction occurred against a backdrop of significant outflows from U.S. spot Bitcoin exchange-traded funds (ETFs), which experienced record outflows totaling $609.3 million in a single trading session. BlackRock's iShares Bitcoin Trust was among the funds with the largest withdrawals.
Analysts attribute the broader market downturn, including Bitcoin's fall below $62,000 to a low of $61,463.22, to sustained outflows from U.S. spot Bitcoin ETFs amounting to $3.45 billion. Macroeconomic fears and a general risk-off sentiment are also cited as contributing factors, alongside a potential shift in investor focus towards AI stocks and upcoming initial public offerings (IPOs). Some speculation suggests that institutions might be intentionally driving down Bitcoin's price to acquire it at lower levels before the potential enactment of the Clarity Act. Separately, a dispute has arisen on the prediction market platform Polymarket concerning an $85 million bet on MicroStrategy selling Bitcoin by May 31, 2026. Traders argue that the platform incorrectly resolved the bet as 'No' because the SEC filing confirming the sale occurred on June 1, despite the actual sale taking place by May 31. This situation highlights potential issues with Polymarket's oracle system and its reliance on UMA token voting for resolutions.
MicroStrategy's decision to sell Bitcoin challenges the prior perception that the company would exclusively accumulate the cryptocurrency. The sale has also prompted discussions regarding the valuation of companies holding Bitcoin on their balance sheets. In related market news, Coinbase's stock fell over 6% after Baird Equity Research lowered its price target to $142 from $160 and designated it a "Bearish Fresh Pick," citing weak trading volumes and potential second-quarter revenue misses. The passage of the CLARITY Act also appears unlikely, which may have influenced market sentiment.
Additionally, a proposal for twice-monthly dividends for Digital Credit is in its final voting week, with proponents believing the upgrade will benefit Bitcoin, MicroStrategy, and Starry Inc. The observation of MicroStrategy's sale has also raised questions about previously stated intentions regarding Bitcoin holdings, particularly from an individual who reportedly declared they would never sell their Bitcoin.