A dispute has emerged among Polymarket users over the timing and transparency of a recent Bitcoin sale by Strategy, with more than $80 million wagered on the contested market outcome.
Users on Polymarket who placed bets on when Michael Saylor’s Strategy would sell Bitcoin are now at odds with the platform over the timing and disclosure of the company’s latest transaction.
More than $80 million has been staked on whether Strategy would sell Bitcoin by May 31, with participants able to wager on either a “Yes” or “No” outcome.
Strategy disclosed in a regulatory filing that 32 Bitcoin were sold between May 26 and May 31. However, the transaction was not revealed until Monday, June 1, leading the market to settle on “No” and creating confusion among users.
Polymarket stated in an “additional context” update added to the affected market on Tuesday that any confirmation of a sale disclosed after the market’s designated 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 users on Polymarket voiced frustration over the market’s outcome.
One affected user argued that “Polymarket should trade truth, not technicalities,” while another said the outcome had caused them to “lose a lot of faith in Polymarket.”
“I am so disappointed in this company today. Unbelievable,” another user said.
Final Decision Expected on Wednesday
The market is now awaiting the result of a second dispute, with a decision expected by 12:00 a.m. UTC on Wednesday.
If no statement is issued at that time, the order book will be cleared, Polymarket said.
Michael Saylor first floated the idea of selling Bitcoin during the company’s first-quarter earnings call on May 5, saying such a move could help “inoculate” the market against abrupt panic reactions.
At the time, it was said by him that market participants would come to realize that “the company is fine, Bitcoin is fine, the industry is fine, and the world has not come to an end.”
The sale stands in contrast to Strategy’s long-held commitment that it would never sell its Bitcoin holdings.
Bitcoin dropped 2.5% to $70,815 within five hours after Strategy disclosed its Bitcoin sale on Monday.
Bitcoin has since seen a partial recovery, with prices moving back up to around $71,200.
