Saylor blamed AI for bitcoin crash. Arca has one word for that: Nonsense
Arca is blaming Strategy’s sale of 32 BTC for last week’s BTC crash, not AI capital rotation, as Strategy’s Saylor claimed.
What to know:
- Arca is blaming Strategy’s sale of 32 BTC for last week’s BTC crash, not AI capital rotation, as Strategy’s Saylor claimed.
- Arca’s CIO, Dorman, argued that markets tanked because the 32 BTC sale signaled the firm may need to sell more to meet its preferred share dividend obligations.
- Dorman explained a scenario that could stabilize the market, but doesn’t think Saylor will do it.
Bitcoin, the leading cryptocurrency by market value fell nearly 14% to $60,000 last week. The sell-off happened after Strategy on June 1 disclosed that it sold 32 BTC in the preceding week. Strategy still holds 845,256 BTC worth billions of dollars.
Saylor attributed the sharp slide to AI infrastructure spending absorbing capital at historic scale.
“The AI buildout is absorbing capital at a historic scale, creating temporary pressure across global markets. That does not weaken Bitcoin. It strengthens the case for scarce, liquid, digital capital. Bitcoin remains the premier asset for the long term,” Saylor said.
Arca isn’t buying it.
Dorman’s argument is straightforward. What crashed the market waqs not the amount of BTC sold, which was just 32, worth roughly $2.5 million, but the realization of what that sale implied: that Strategy may need to sell significantly more bitcoin to meet the cash dividend obligations on its preferred shares, including STRC.
