Two traders have filed a lawsuit against Polymarket, alleging the prediction market platform improperly resolved a market on whether Strategy (formerly MicroStrategy) sold bitcoin in May. According to a filing cited by The Block, the plaintiffs claim Strategy's SEC disclosure showed it sold 32 BTC between May 26 and May 31, but Polymarket resolved the market as "No."
Pressure on corporate bitcoin holdings intensified after Strategy reported an estimated $8.3 billion second-quarter loss on its 226,331 BTC hoard. On July 6, the firm revealed it sold 3,588 bitcoin for approximately $216 million between June 29 and July 5 — its largest disposal in years, according to CryptoSlate. Bitcoin briefly fell to $61,000 before recovering.
Regulatory attention now pivots toward prediction markets and digital asset disclosures. The Polymarket lawsuit raises questions about the legal status of event contracts tied to corporate filings, especially as the SEC has previously targeted unregistered securities in the crypto space. No formal SEC or CFTC action has been announced.
Strategy's move rippled through the market cap rankings of crypto-exposed companies. Despite the sales, Grayscale Research argued the divestment is actually positive for long-term price stability, suggesting it reduces overhang and signals liquidity management rather than a bearish pivot. Meanwhile, Polymarket traders see a 79% probability the Federal Reserve will not cut rates this year, per Crypto Briefing.
Critics warn that forced selling by a bellwether holder like Strategy could undermine the 'treasury-as-collateral' thesis that underpins many corporate BTC strategies. Yet supporters counter that the firm's remaining 222,743 BTC still dwarfs any single institutional sale, making this a normalization of treasury management rather than a strategic retreat.