Following the overnight sell-off, Bitcoin has fallen 22.7% from its near four-week high, entering technical bear market territory. The price briefly dipped to $61,400 before recovering to around $62,400. Strategy's stock price also came under pressure, falling nearly 15% in the past five trading days.
Michael Saylor stated on X that approximately $400 billion has flowed into AI infrastructure in the capital markets over the past six months, while spot Bitcoin ETFs have seen outflows of approximately $4 billion since May 14th. He described this pullback as a phase of fund rotation rather than a loss of market confidence in Bitcoin itself.
Funds are shifting to AI infrastructure
The report cites Wall Street consensus estimates that hyperscale cloud vendors' capital expenditures could exceed $600 billion in 2026, with approximately $450 billion earmarked for AI hardware, servers, and network equipment. Saylor believes this indicates that institutional funds are currently favoring AI-related projects, which is putting pressure on Bitcoin ETF subscriptions.
In the short term, Bitcoin has fallen by about 7% in the last 24 hours and by more than 14% in the past week. The report also states that this decline has wiped out over $600 billion from the total market capitalization of the crypto market.
Strategy sold 32 bitcoins.
The market is more focused on Strategy's recent unusual reduction in its Bitcoin holdings. In its 8-K filing on June 1, the company disclosed that between May 26 and 31, it sold 32 Bitcoins at an average price of $77,135 each, netting approximately $2.5 million after deducting expenses.
The company stated that the funds will be used to pay dividends on its STRC preferred stock. Although the sale was small, it marked Strategy's first sale of Bitcoin since the end of 2022, and was therefore seen as a sensitive signal by the market.
As of the time of disclosure, Strategy still held 843,706 Bitcoins, which, according to reports, correspond to a market value of approximately $61 billion, making it one of the largest publicly traded companies in the world in terms of cryptocurrency holdings.
The balance sheet has been adjusted previously.
A week before selling Bitcoin, Strategy had already adjusted its financing structure. The company repurchased 0% convertible bonds maturing in 2029, with a notional size of $1.5 billion and an actual cash payment of approximately $1.38 billion.
According to the company, the transaction reduced its debt burden by approximately $120 million, decreasing its outstanding convertible bonds from $8.2 billion to $6.7 billion. Following the repurchase, the company has approximately $871 million in cash reserves.
The report suggests that Saylor attributed the Bitcoin decline to AI-driven fund rotation, but during a market downturn, even selling only a small amount of Bitcoin by Strategy was enough to amplify external attention to changes in its portfolio strategy.
