Legendary trader Peter Brandt believes the legal framework prepared by Michael Saylor’s company Strategy for a potential $1.25 billion Bitcoin sale could pose cascading risks. Commenting on the introduction of the new framework, Brandt stressed that the restrictions are “only the first wave of supply to the market” if the company is forced to sell.
No, Michael Saylor did not say that the company would immediately start selling cryptocurrencies. But his long-held mantra of “never sell Bitcoin” is officially no longer absolute, and under the new capital structure presented on Monday, Strategy’s board has legalized the very possibility of selling a portion of its Bitcoin holdings.
For now, direct sales are only a hypothetical scenario and market rumor, but the creation of such a legal window has caused serious concerns among major companies.
debt, discounts, deficits
Peter Brandt’s skepticism is supported by the harsh reality that strategies face by summer 2026. The company’s financial metrics clearly explain why Saylor had to exit.
Due to the drop in Bitcoin prices, its huge portfolio of 847,000 coins fell into a significant deficit. Unrealized losses exceeded $14.3 billion because the average purchase price was significantly higher than current market levels. Against this backdrop, the stock market began valuing Strategy’s shares at a steep discount of 38% compared to the value of its net crypto assets, and the company’s market capitalization decreased to $30.9 billion.
The situation is worsening due to heavy debt pressure. The company aggressively issued bonds to buy Bitcoin during the bull market. Now, with the collapse of Bitcoin, the cost of fulfilling these obligations has risen to critical levels. For example, the current yield on STRD products stands at 18%.
Blunt said the $1.25 billion limit would cover only the most urgent needs if circumstances force Saylor to use the new legal framework to pay off debt. That’s why analysts are warning about a “first round.” If prices remain depressed, the triggering of this mechanism could lead to a prolonged series of liquidations.
Market conditions only exacerbate these risks. Bitcoin is trading near $58,922, with sellers clearly dominating the chart. Major cryptocurrencies have already settled below their key long-term support, the 200-week moving average, while technical indicators are sliding towards the extreme fear zone.
If the current threshold around $58,000 is not sustained, the framework Saylor has legally prepared could turn from a defensive tool into a real trigger that sends an avalanche of sell orders directly into exchange order books against the backdrop of an already illiquid summer market.
