According to The Block, Strategy disclosed in an SEC filing that it sold 32 BTC between May 26 and 31, cashing out approximately $2.5 million to pay preferred dividends—marking its first Bitcoin sale since December 2022. This disclosure has sparked controversy on Polymarket’s $20 million+ trading pool, which bet on whether Strategy would sell Bitcoin before May 31. The dispute centers on whether the sale qualifies: supporters of "Yes" argue the transaction occurred before the deadline, while supporters of "No" contend the information was not publicly disclosed until after the market closed and thus should not count. The market is now in its final review phase, with Polymarket adding that "results confirmed after the deadline are not valid," leaning toward the "No" side. If the dispute escalates further, it will be resolved by a vote of UMA token holders; however, prior reports indicate that UMA voting power is highly concentrated, with over 60% of active voters linked to Polymarket accounts, raising questions about its impartiality.
Strategy sells 32 BTC worth $2.5M, sparking a $20M prediction market dispute on Polymarket
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Summary
According to SEC filings, the strategy sold 32 BTC, valued at $2.5 million, between May 26 and 31 to fund preferred stock dividends. This move reignited a $20 million prediction market on Polymarket asking whether the firm would sell BTC before May 31. A dispute has now emerged over whether the undisclosed timing invalidates the "yes" outcome. Polymarket stated that post-deadline confirmations will not count, favoring the "no" side. UMA token holders may vote if the debate escalates, though over 60% of active voters are linked to Polymarket accounts, raising concerns about market-making strategies and market trends.
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