Strategy CEO Phong Le has clarified that the company would consider selling its Bitcoin holdings only if its stock trades below net asset value (mNAV) and if all other funding options are exhausted.
Sale as last financial resort
Speaking on the What Bitcoin Did show, Le explained that selling Bitcoin would be a mathematically justified move to protect ‘Bitcoin yield per share’ if the firm’s multiple to net asset value drops below one and capital becomes unavailable.
Le emphasized that this scenario would be a last resort rather than a change in company policy. He stated:
“I would not want to be the company that sells Bitcoin.”
The company’s model is built around raising capital when shares trade at a premium to NAV and using those funds to accumulate more Bitcoin, boosting the BTC held per share.
If that premium evaporates, Le said selling some Bitcoin could be more acceptable to shareholders than raising equity at a discount.
Dividend obligations under scrutiny
Strategy faces significant fixed payments from preferred shares issued this year, with annual dividend obligations estimated between $750 million and $800 million as recent issuances mature.
Le’s approach is to fund these payouts first through equity raised at a premium to mNAV.
He added that regular dividend payments help build market confidence, even in bear markets, as shareholders become accustomed to the company’s consistent distributions.
Long-term Bitcoin commitment
Defending the company’s ongoing accumulation strategy, Le described Bitcoin as a scarce, non-sovereign asset valued globally.
He listed countries across several continents where demand for Bitcoin remains strong, underscoring its broad appeal and limited supply.
New BTC credit dashboard launched
To calm investor concerns after recent market volatility, Strategy has introduced a ‘BTC Credit’ dashboard.
The company asserts that its dividend coverage is sufficient for decades, even if bitcoin’s price remains flat.
Strategy also claims its debt would remain manageable if bitcoin fell to its average purchase price of $74,000, or even as low as $25,000.
