Said they would never sell Bitcoin... If Strategy breaks 'here', retail investors face hell

▲ Bitcoin (BTC), cryptocurrency decline, bear market/AI-generated image

While Wall Street whales have been heavily buying Strategy shares during a sharp stock price decline, market anxiety is growing due to internal discussions within the company about the possibility of selling Bitcoin (BTC).

On May 21 (local time), virtual asset specialized media CoinGeape reported that despite Strategy's stock price falling by 19% from $154 to $124 between January and March 2026, Wall Street institutional investors accumulated $4.6 billion worth of shares during the same period. Strategy continued to purchase Bitcoin, increasing its total holdings to 843,738 BTC as of May 18. Phong Le, Strategy's CEO, stated that 13 institutions additionally purchased $4.6 billion worth of shares in the first quarter alone. Vanguard ranked second in purchase volume by additionally buying $967 million in the first quarter, while Capital International Investors invested $1.9 billion, increasing its total holdings from $36.5 billion to $55.7 billion, becoming the largest buyer. BlackRock also purchased $377 million, while Morgan Stanley sold $7 million.

Unlike institutional buying, Strategy's financial burden has increased. The company recorded a net loss of $12.54 billion in the first quarter of 2026. TD Cowen raised Strategy's target stock price to $400 based on additional Bitcoin purchases and a $1.5 billion convertible bond repurchase, but within the market, caution regarding financial pressure is spreading.

The biggest variable is Strategy's announcement that it may sell its held Bitcoin to raise $1.5 billion for the convertible bond repurchase. This conflicts with Strategy's previous operating method, which has emphasized a long-term Bitcoin holding strategy. Concerns are being raised that if this potential sale materializes, Wall Street institutions may lower target stock prices at the time of the third-quarter earnings announcement, leading to a large-scale capital outflow.

Bearish signals have also appeared on technical charts. Strategy's stock price traded at $162, down 1.92%, approaching the key support level of $161. Analysis suggests that if selling pressure breaks the $161 support, a double-top rounding top pattern with a depth of 18.29% could be confirmed on the chart.

Since May 11, selling volume has overwhelmed buying, pushing the stock price near $161. The Relative Strength Index (RSI) also dropped to 46, indicating strengthening downward momentum. If the $161 support level breaks, Strategy's stock price could fall to around $131 by June 30. With the possibility of Bitcoin sales and concerns about the breakdown of technical support intertwining, the direction of Strategy's stock price now depends on whether Wall Street institutional buying continues.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*