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Legendary trader Peter Brandt believes that the legal framework prepared by Michael Saylor's company Strategy for a potential $1.25 billion Bitcoin sale could trigger cascading risks. Commenting on the launch of the new framework, Brandt stressed that if the company is forced to sell, this limit would be "only the first round of supply on the market".
No, Michael Saylor did not say that the company is starting to immediately dump its cryptocurrency. However, his long-standing dogma of "never selling Bitcoin" has officially ceased to be absolute, and under the new capital structure presented on Monday, Strategy's board of directors legalized the very possibility of selling part of its Bitcoin holdings.
Although direct sales remain only a hypothetical scenario and a market rumor for now, the creation of such a legal window has raised serious concerns among major players.
Debt, discounts, and deficit
Peter Brandt's skepticism is backed by the harsh realities Strategy found itself in by Summer 2026. The company's financial indicators clearly explain why Saylor had to backtrack.
Because of the decline in Bitcoin's price, its giant portfolio of 847,000 coins moved deep into the red — the unrealized loss exceeded $14.3 billion, as the average purchase price was significantly higher than current market levels. Against this backdrop, the stock market began valuing Strategy shares at a huge 38% discount to the value of its net crypto assets, while the company's market capitalization fell to $30.9 billion.
The situation is worsened by heavy debt pressure. To buy Bitcoin during the bull market, the company actively issued debt instruments. Now, because of Bitcoin's plunge, the cost of servicing these obligations has risen to crisis levels — for example, the current yield on the STRD instrument has reached 18%.
According to Brandt, if the situation forces Saylor to use the newly created legal window to pay down debt, the $1.25 billion limit would cover only the most urgent needs. That is why the analyst is warning about a "first round" — if prices remain low, the launch of this mechanism could trigger a prolonged series of liquidations.
The market environment only makes these risks worse. Bitcoin is trading around $58,922, and sellers are clearly dominating the charts. The leading cryptocurrency has already settled below its key long-term support — the 200-week moving average — while technical indicators are sliding toward the extreme fear zone.
If the current threshold near $58,000 fails to hold, the framework legally prepared by Saylor 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 low-liquidity summer market.
U.Today Editorial Team
Dan Burgin
