Selling through the 32 Bitcoin strategy should not have made a difference. The company still holds hundreds of thousands of BTC, and the transaction barely moved the needle on its balance sheet. However, the market reaction was swift, revealing how much of the Bitcoin treasury trade was built on a uncomplicated premise: companies buy Bitcoin… and never sell it.

Elsewhere in the cryptocurrency industry this week, JPMorgan CEO Jamie Dimon stepped up his fight against the industry’s preferred market structure bill, and French treasury firm Bitcoin pushed the boundaries of capital accumulation by asking shareholders to approve a massive $122 billion fundraising mandate.

Bitcoin Selling Strategy Tests Treasury Trading

Michael Saylor’s strategy rocked the market after revealing the sale of 32 Bitcoins – the first reported BTC liquidation outside of a tax-related transaction in 2022.

The sale itself was petite compared to the company’s massive stake, but it challenged the long-held narrative that Strategy would only accumulate Bitcoin and never sell it. MSTR shares fell sharply following the disclosure as investors reassessed the assumptions underlying Bitcoin’s treasury model.

“The market has learned that strategy can no longer be viewed as a purely one-way accumulation tool,” Delphi Digital wrote in a market summary.

“The old ‘never sell’ meme has been broken in practice, not just in the language of conference calls,” Delphi added.

The deal has reignited debate over how Bitcoin treasury companies should be valued. While Strategy remains committed to increasing its Bitcoin per share ratio, the sale was a reminder that even the most committed corporate investors must face financial realities.

Source: Michael Saylor

JPMorgan CEO draws a line in the sand on CLARITY

The battle over U.S. cryptocurrency regulation has intensified after JPMorgan CEO Jamie Dimon said banks would oppose the latest version of the CLARITY Act, arguing that crypto companies receive privileges without being subject to the same regulatory burdens as customary financial institutions.

Dimon particularly criticized regulations that would allow crypto companies to offer interest-bearing products while avoiding capital and compliance requirements imposed on banks.

The comments highlight a growing divide between the banking sector and the cryptocurrency industry as lawmakers push for market structure regulations. Supporters see CLARITY as a long-awaited framework that will provide regulatory certainty and encourage innovation. But critics say the bill risks creating an uneven playing field.

Jamie Dimon said the banking industry opposes the latest CLARITY tags. Source: Lisa’s business

Capital B Seeks Approval for $122 Billion Bitcoin War Chest

Treasury company Bitcoin Capital B is asking shareholders to approve a significant expansion of its fundraising capabilities, seeking authorization to issue up to 5 billion euros ($5.8 billion) in fresh equity capital and about $116 billion in credit facilities to finance future Bitcoin purchases.

The proposal, which will be voted on at Capital B’s shareholders’ meeting on June 17, will give management access to a much larger pool of capital than it has already raised. According to the company, Capital B has secured approximately $325 million in financing to date, including a recent raise backed by Blockstream CEO Adam Back and asset manager TOBAMA.

Last month, the company purchased 192 BTC for $15.2 million, and on Monday it added another 4 BTC, bringing its total holdings to 3,139 BTC.

Source: Alexander Laizet

Coinbase invests in the ProShares reserve stablecoin ETF

Coinbase has invested an undisclosed amount in the ProShares GENIUS Money Market ETF (IQMM), a fund designed to hold assets that qualify as stablecoin reserves under the GENIUS Act.

The exchange-traded fund provides exposure to cash, bank deposits and short-term U.S. Treasury securities that issuers of payment stablecoins are required to hold under regulations. The GENIUS Act requires stablecoins to be backed by highly liquid reserves, creating demand for investment products tied to these assets.

The investment underscores growing interest in stablecoin reserve assets as the United States moves closer to establishing a federal regulatory framework for the sector. Stablecoin issuers are expected to become major buyers of Treasury bills and other highly liquid securities if their employ continues to grow.

Source: ProShares

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