Strategy’s Bitcoin Sale Sparks Polymarket Dispute

Polymarket users who bet on when Michael Saylor’s Strategy would sell Bitcoin are in dispute with the prediction market platform over the timing and disclosure of the company’s recent sale.

More than $80 million has been wagered on whether Strategy would sell Bitcoin (BTC) by May 31, with users able to buy odds on “Yes” or “No.”

Strategy said in a regulatory filing that it sold 32 Bitcoin (BTC) between May 26 and May 31, but the disclosure of the sale was made on Monday, June 1, leading the market to resolve to “No,” causing confusion among users.

Odds for Polymarket’s “MicroStrategy sells any Bitcoin by May 31” market have since fallen to 0.7 cents. Source: Polymarket

Polymarket said in an “additional context” section of the affected market updated on Tuesday that any confirmation of a sale disclosed outside of the market’s timeframe “does not qualify.”

“No information from MSTR, on-chain data, or consensus of credible reporting confirmed that MicroStrategy sold Bitcoin within the market’s timeframe,” the notice said.

Several Polymarket users expressed frustration with the market. 

“Polymarket should trade truth, not technicalities,” one affected user said. Another added it had made them “lose a lot of faith in Polymarket.”

“I am so disappointed in this company today. Unbelievable,” another user said.

Final decision to come Wednesday

The market is currently awaiting the outcome of a second dispute, which is set to be decided by 12:00 am UTC on Wednesday.

If no statement is issued at that time, the order book will be cleared, Polymarket said.

Related: Strategy’s STRC hits record $1.5B trading volume 

Saylor first pitched the idea of selling Bitcoin in the company’s first-quarter earnings call on May 5, stating that the sale would be to “inoculate” the market against sudden panic.

He said at the time that market participants will realize that “the company’s fine, the Bitcoin’s fine, the industry’s fine, the world didn’t come to an end.” 

The sale contrasts with Strategy’s previously long-stated promise that it would never sell its Bitcoin. 

Bitcoin fell 2.5% to $70,815 within five hours of Strategy reporting the Bitcoin sale on Monday.

Bitcoin has since partially recovered to $71,200.

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