Saylor blamed AI for bitcoin crash. Arca has one word for that: Nonsense
Arca said last week’s bitcoin drop was driven by Strategy’s own news, not AI spending. Bitcoin fell nearly 14% after Strategy disclosed it sold 32 BTC, which Arca says mattered less for size than for what it signaled: the company may need to keep selling bitcoin to fund preferred-share dividends. Jeff Dorman argued Michael Saylor had already weakened confidence by using cash to retire debt and by hinting at a small BTC sale that barely covers one month of obligations. Arca says markets would likely rally if Strategy raised $2 billion to $4 billion through stock or bitcoin sales to fund dividends through September 2028, but expects Saylor to keep selling gradually instead. Dorman also noted bitcoin’s early-week decline stayed relatively isolated, suggesting crypto markets are becoming more selective, though the selloff later spread.
