Strategy paused Bitcoin accumulation to repurchase $1.38 billion in debt, triggering a 21% BTC decline to $61,000.
Bitcoin fell 21% to $61,000 over 10 days after Strategy paused its BTC purchases to buy back $1.38 billion in corporate debt. The move raised concerns over liquidity and potential forced liquidations of its 126,016 BTC holdings, valued at $9.31 billion.
Strategy had been the largest corporate Bitcoin buyer, accumulating its reserves since March. However, tighter liquidity conditions and the Stretch preferred stock (STRC US) trading below $100 weighed on sentiment, reducing the likelihood of a rally above $70,000.
The correction coincided with net selling pressure from spot Bitcoin ETFs, amplifying the downward momentum. Strategy’s 11% net leverage remains conservative, mitigating immediate liquidation risks.