Key Takeaways
- DWF Labs sees Strategy’s Bitcoin sales as constructive.
- Grayscale Research said Strategy’s willingness to sell Bitcoin to strengthen its cash position should improve confidence.
- Peter Schiff remains bearish.
Bitcoin could still be poised for another parabolic bull market despite requiring significantly more capital to drive prices higher, according to CryptoQuant founder Ki Young Ju, who says deeper institutional adoption remains the key catalyst.
His comments come as DWF Labs Managing Partner Andrei Grachev told CCN Strategy’s recent decision to sell portions of its Bitcoin holdings could ultimately support its long-term price outlook.
Michael Saylor’s company recently disclosed its second Bitcoin sale in recent weeks, raising approximately $216 million by selling 3,588 Bitcoin between June 29 and July 5.
The move has divided the industry, with Grayscale Research arguing the sales reduce the firm’s financial risks, while longtime Bitcoin critic Peter Schiff warned they could mark the beginning of sustained selling pressure.
Grayscale Also Argued Sales Could Strengthen Bitcoin Price
Grachev’s assessment broadly echoes comments made last week by Grayscale Head of Research Zach Pandl.
He argued that Strategy’s new willingness to sell Bitcoin when necessary should improve investor confidence rather than undermine it.
Pandl said the company’s updated capital allocation framework addressed concerns over shrinking cash reserves by confirming it would dispose of Bitcoin when required to maintain sufficient liquidity.
Following the latest transaction, Strategy increased its cash reserves to approximately $2.55 billion while continuing to hold 843,775 Bitcoin.
“Recent actions by Strategy… should restore market confidence over its financing structure and, in our view, may help Bitcoin’s price find a more durable bottom,” Pandl wrote.
Strategy No Longer a One-Way Bitcoin Buyer
While Grachev said the latest sale should be viewed positively, he acknowledged it marks the biggest strategic shift since Strategy adopted its Bitcoin accumulation plan.
“It changes the character of the bet, not the fundamentals overnight,” he said.
“For years, Strategy was a pure one-way leveraged Bitcoin buyer.”
He said investors should now evaluate the company more like any other leveraged balance sheet, focusing on liquidity management rather than just Bitcoin.
“The thesis isn’t broken, but ‘they only ever buy’ is no longer part of it.”
Grachev added that the market had long priced Strategy as a permanent source of Bitcoin demand.
“…the single largest one-way buyer of Bitcoin has become a potential seller, and that changes the demand picture underneath the market.”
However, he said the biggest risk was the possibility of unexpected sales.
“A large sale that’s clearly communicated gets absorbed,” he said. “The danger is speed and surprise, not size alone.”
Peter Schiff Warns Sales Could Eventually Weigh on Bitcoin
Not everyone agrees that Strategy’s changing approach will benefit the market.
Bitcoin critic Peter Schiff recently argued that Michael Saylor’s company had gone from being Bitcoin’s largest corporate buyer to becoming a potential source of sustained selling pressure.
Speaking on the Crowded Market Report podcast, Schiff said he believes investors are underestimating the significance of the shift.
“I think Strategy was the big buyer propping up the market, now they’re a seller,” Schiff said.
“I don’t think investors really appreciate how big this is going to be.”
Schiff also predicted spot Bitcoin ETF inflows would weaken as speculative demand fades, warning that any future legal liabilities could force Strategy to sell additional Bitcoin.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt’s work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.