Bitcoin recovered from sharp early losses on Monday after President Donald Trump publicly reaffirmed his support for cryptocurrency, helping offset investor concerns sparked by another round of bitcoin sales from software company Strategy.
The world's largest cryptocurrency initially tumbled toward the $60,000 mark after Strategy, the largest corporate holder of bitcoin, disclosed it had sold an additional $216 million worth of the digital asset. The move renewed concerns about the company's long-term commitment to bitcoin after years of promoting a buy-and-hold strategy.
However, sentiment shifted later in the day when Trump offered a strong endorsement of cryptocurrency during a press conference."Well ... I've become a big crypto guy," Trump said when asked whether bitcoin could eventually be included in the recently launched Trump Accounts, a new savings program designed to help children build wealth over their lifetimes. Following the president's comments, bitcoin erased its earlier losses and traded at $63,709 at 4:15 p.m. up close to 2% on the day after falling more than 2% earlier in the session.
Earlier Monday, however, market attention centered on Strategy, the company formerly known as MicroStrategy, after it revealed another significant sale of bitcoin in a regulatory filing. The company sold approximately $80.8 million worth of bitcoin at an average price of $59,256 per token between June 29 and June 30.
It followed those transactions with an additional $135.5 million in bitcoin sales between July 1 and July 5.The combined $216 million sale further distances Strategy from the philosophy championed for years by Executive Chairman Michael Saylor, one of bitcoin's most prominent advocates, who had repeatedly pledged to hold the company's bitcoin indefinitely.
According to Barclays analyst Ajay Rajadhyaksha, that policy reversal has become an important factor weighing on investor sentiment."Strategy's entire investment thesis was built on a public promise never to sell," Rajadhyaksha wrote in a note to clients. "When they sold, even a minuscule amount, and then announced a new policy framework allowing further sales for capital allocation purposes, it was a significant hit to sentiment."
Despite the recent transactions, Strategy remains by far the world's largest corporate bitcoin holder, owning 843,775 bitcoin worth approximately $52.1 billion based on Monday's market prices. The company said its average acquisition cost now stands at $75,476 per bitcoin.
Strategy first signaled its willingness to sell bitcoin in May, departing from years of messaging that emphasized accumulating and holding the cryptocurrency. It completed its first sale since 2022 on June 1, when it sold just over $2 million worth of bitcoin. Since then, bitcoin has largely traded between $60,000 and $70,000, briefly slipping below $60,000 in late June before recovering.
Not all Wall Street analysts interpret Strategy's sales as a negative signal for bitcoin itself. Cantor Fitzgerald analyst Ramsey El-Assal argued the transactions are primarily intended to strengthen the company's preferred stock, STRC, rather than reflect a bearish view on cryptocurrency.
"We fully expect the company to do whatever it takes to lift STRC to par," El-Assal wrote, describing the preferred shares as the company's "center of gravity." He noted that Strategy must balance the interests of preferred stockholders, common stockholders, and bitcoin investors. Decisions benefiting one group may temporarily come at the expense of another.
Strategy shares finished Monday about 1% higher, while its STRC preferred shares climbed nearly 3%, suggesting investors viewed the company's latest moves as part of a broader capital management strategy rather than an abandonment of its long-term commitment to bitcoin.
