Bitcoin Drops Again: Michael Saylor Might Sell His BTC!

Michael Saylor, an iconic figure in bitcoin, has long held his strategy as a banner of absolute hodl. However, a recent filing with the SEC cracks this narrative. The man who promised to bequeath his BTC to a dedicated foundation is now reportedly considering selling — at least under duress. A turn of events that raises questions: how far can one challenge financial and regulatory realities in the name of conviction?

A regulatory sword of Damocles

Saylor’s promise to “hold his bitcoins forever” now faces an unforeseen obstacle: regulatory requirements. The document filed with the SEC in April 2024 clearly mentions a scenario where MicroStrategy could liquidate part or all of its 582,185 BTC. The reason? A sharp drop in their market value, potentially jeopardizing the company’s financial obligations.

“Such a sale would likely occur at unfavorable prices”, states the text. Translation: in the event of a liquidity crisis, the company would have no choice but to sell off its assets — an ironic prospect for a company that has established bitcoin as the ultimate store of value. Worse, this hypothesis arises as BTC fluctuates around $80,000, after a 10% drop in 24 hours.

Should we see this as an admission of vulnerability? Not exactly. The filing acts primarily as a legal warning, reminding that even the most fervent supporters of bitcoin are not immune to economic contingencies.

What remains is that this revelation contrasts with Saylor’s triumphant statements on CNBC, where he claimed that “bitcoin is the emergency exit from monetary collapse.”

A colossal bet in an unpredictable bitcoin market

With a portfolio of $46.5 billion in BTC, MicroStrategy embodies the essence of institutional confidence in crypto.

In March 2024, the company added another 22,048 bitcoins to its holdings, financed by a preferred stock issuance. A bold move, as the market struggles to stabilize its price after recent geopolitical turmoil.

But this frantic accumulation raises questions. What would happen if MicroStrategy had to sell just 10% of its reserves? The impact on the market would be immediate, likely amplifying volatility — an irony for a company that presents itself as a bastion of stability. In 2022, rumors of margin calls had already shaken the community, before Saylor denied them. This time, the risk is officially acknowledged.

However, behind these tensions lies a more nuanced strategy. Temporarily selling would not mean abandoning the long-term vision for bitcoin. As the document highlights, nothing would prevent a later repurchase — a maneuver already observed in some traditional funds. Saylor thus plays a double game: maximalist in words, pragmatic in action despite the loss of $5.91 billion in 3 months.