Analyst: Strategy selling BTC to defend stock price would invite attacks

Julio Moreno, Head of Research at CryptoQuant, warned that if Strategy, the largest corporate holder of Bitcoin, were to sell its common stock (MSTR) or its BTC holdings to defend the price of its preferred stock (STRC), it would signal a key price level to the market. He cautioned that this would effectively tell speculators the BTC price level Strategy is trying to protect, prompting them to intensively attack that level. Moreno had previously pointed out that the primary reason STRC's price fell below $100 was the deterioration of Strategy's fundamentals. He suggested that the company's strategic priority should be to halt further Bitcoin purchases and focus on rebuilding its cash reserves.