Michael Saylor’s company, Strategy (NASDAQ: MSTR), has sold more than $200 million worth of Bitcoin (BTC), prompting warnings from crypto analyst Ali Martinez that the move could contribute to a final phase of market capitulation.
In an X post on July 6, Martinez said such a capitulation could resemble the event that marked the bottom of the 2022 Bitcoin bear market.
The concerns follow a July 6 SEC filing showing that Strategy sold 3,588 BTC between June 29 and July 5 for approximately $216 million.
According to the filing, the proceeds were used to fund preferred stock distributions, meet digital credit securities obligations, and strengthen the company’s cash reserves, which stood at $2.55 billion as of July 5.
The sales reduced Strategy’s Bitcoin holdings to 843,775 BTC and followed an earlier disposal of 32 BTC in May.
In total, the company has sold roughly 3,620 BTC this year. The transactions also come after Strategy’s board approved a Bitcoin Monetization Program that authorizes up to $1.25 billion in Bitcoin sales to support dividends, liquidity needs, and other capital structure obligations.
The latest transaction marks Strategy’s largest Bitcoin sale since a tax-related disposal in 2022 and signals a notable shift for a company that built its reputation on aggressively accumulating the cryptocurrency.
Strategy vs FTX situation
According to Martinez, the situation surrounding Strategy is beginning to resemble the sequence of events that preceded the collapse of FTX, although he stressed that the circumstances are fundamentally different.
He emphasized that the comparison is not about fraud or corporate misconduct but rather market psychology. In his view, rumors create doubt, doubt triggers selling, and selling can expose vulnerabilities that accelerate fear across the market.
Martinez pointed to the collapse of FTX in November 2022 as an example of how quickly confidence can unravel.
He noted that concerns intensified after Binance announced plans to liquidate its FTT holdings, triggering withdrawals, exposing balance-sheet weaknesses, and ultimately leading to FTX’s collapse—an event that coincided with the final bottom of the 2022 Bitcoin bear market.
Impact on Bitcoin sentiment
He argued that a similar deterioration in sentiment may be emerging around Strategy. According to Martinez, speculation first surfaced that the company could be forced to sell Bitcoin after its STRC preferred security fell below key levels. Strategy later sold 32 BTC in May and has now disclosed more than $216 million in Bitcoin sales.
While reiterating that Strategy’s situation is fundamentally different from FTX’s, Martinez said the progression from rumors to skepticism and then to actual asset sales could generate similar pressure on investor confidence.
Although the sales represent only a small fraction of Strategy’s Bitcoin holdings, they mark a significant shift for a company long known for relentless accumulation.
Meanwhile, the move has also intensified scrutiny of corporate Bitcoin treasury strategies and their influence on broader market sentiment.
