CoinDesk, citing Arca’s weekly report, noted a clear divide in the market over explanations for last week’s Bitcoin pullback. Michael Saylor, Chairman of Strategy, attributed the decline to global capital being drawn toward AI infrastructure investments, while Arca argued that a more direct catalyst was corporate disclosures of the sale of 32 Bitcoin.
The market is not worried about 32 bitcoins
Last week, Bitcoin dropped nearly 14%, falling to around $60,000. On June 1, Strategy disclosed that it had sold 32 Bitcoin in the previous week. At the prevailing price, this transaction amounted to approximately $2.5 million.
Arca believes that what truly pressured the market was not the sale itself, but the signal it sent: that Strategy may need to sell additional bitcoins in the future to meet cash obligations such as preferred dividend payments, leading the market to reevaluate related instruments, including STRC.
The dispute centers on cash flow pressure.
Saylor previously stated that the expansion of AI infrastructure is absorbing capital at historic highs, creating short-term pressure on global markets. However, Arca does not accept this claim. In the weekly report, Dorman noted that a series of actions by the Strategy over the past few weeks have caused the market to begin worrying about its cash arrangements.
According to his statement, Strategy first used its available cash to address zero-coupon debt, then disclosed a small-scale sale of cryptocurrency. Although the sale of 32 bitcoins represented a limited amount, it was barely sufficient to cover one month’s preferred dividend payments. This has prompted investors to question whether the company will continue selling cryptocurrency on a monthly basis if cash flow continues to tighten.
Arca provides conditions for a stable market.
Dorman believes that if Strategy discloses through an 8-K filing that it has raised $2 billion to $4 billion through the sale of MSTR shares and a portion of its Bitcoin holdings—sufficient to cover preferred dividends until September 2028—market pressure could significantly ease.
In his view, such an arrangement could first alleviate concerns about forced selling, then create room for Bitcoin’s price to recover. However, he also believes that Saylor may not opt for this approach, as his long-term strategy still clearly favors continued Bitcoin accumulation.
Bitcoin fell first, while other assets held up for a time.
Arca also noted a noteworthy phenomenon: at the beginning of this downturn, selling pressure was primarily concentrated on Bitcoin itself, with other crypto assets not immediately experiencing synchronized declines. Dorman believes this indicates that market participants are beginning to differentiate the specific risks of individual assets, rather than indiscriminately selling off the entire market when Bitcoin weakens.
However, as the weekly decline widened, Bitcoin's pullback ultimately dragged down the broader cryptocurrency market. Arca's assessment is that, in the short term, market focus will remain on the fund's financing arrangements, its ability to cover dividends, and whether additional selling activity will occur.