Bitcoin stabilized on Wednesday, paring its intraday gains after Strategy, the largest corporate cryptocurrency holder, announced it might sell some of its holdings.
Nevertheless, Bitcoin remained near a three-month high, and the broader cryptocurrency market also showed mostly positive momentum amid growing hopes for a de-escalation of the conflict between the US and Iran.
Bitcoin rose 0.5% to $81,368.8 as of 9:32 AM. Earlier in the session, the world's largest cryptocurrency reached a more than three-month high of $81,718.9.
Market sentiment improved after US President Donald Trump announced the suspension of military escort operations through the Strait of Hormuz following Iran's military retaliation.
Trump also stated that negotiations with Iran are progressing, and the pause in operations is intended to pave the way for a comprehensive agreement with Tehran.
Trump's comments followed statements by Iranian officials about progress in Pakistan-brokered talks earlier this week. These signals raised hopes for a broad de-escalation of the Middle East conflict and supported risk assets.
Strategy Considers Selling Bitcoin to Pay Dividends
Strategy said it is considering selling a portion of its 818,334 bitcoin holdings to fund dividend payments and repay debt obligations.
Michael Saylor noted, "We'll likely sell some bitcoin to fund dividends—just to calm the market," adding that the company's latest preferred share offering, STRETCH, was highly demanded.
Strategy financed its bitcoin purchases primarily through debt instruments and the issuance of preferred shares, making the company vulnerable to potential debt payments.
Saylor, however, emphasized that the impact of the sales would be limited, and the company plans to repurchase more Bitcoin than it sells.
Nevertheless, this move marks a significant departure from Saylor's previous stance of never selling Bitcoin. This change in stance comes after Strategy recorded a significant operating loss of $14.47 billion in the first quarter, primarily due to unrealized losses on Bitcoin assets.
Crypto Market Today: Altcoins Stable Amid Iran Situation
The broader cryptocurrency market traded in a neutral to moderately positive range, with the potential de-escalation of tensions between the US and Iran remaining the focus. This factor drove the crypto market's strong recovery last week.
Ether, the world's second-largest cryptocurrency by market capitalization, fell 0.4% to $2,369.43, while XRP rose 1.3% to $1,4254.
Solana and Cardano gained 2.9% and 3.5%, respectively, while BNB rose 1.3%.
Among memecoins, DOGE rose 3.4%, while $TRUMP gained 2.8%.