TLDR
- Strategy faces $750M–$800M in annual dividend obligations from preferred shares.
- CEO says Bitcoin would only be sold if mNAV falls below 1 and capital dries up.
- Company aims to fund payouts by issuing equity above mNAV, not selling BTC.
- BTC Credit dashboard launched to address investor concerns after market drop.
Strategy, the largest corporate holder of Bitcoin, has made it clear that it will only consider selling its BTC holdings under extreme financial pressure. CEO Phong Le stated that a Bitcoin sale would be a last-resort move—triggered only if the firm’s stock falls below its net asset value and external capital becomes unavailable. Until then, Strategy remains committed to its long-term Bitcoin treasury approach and dividend obligations.
Clear Conditions for Selling Bitcoin
Strategy CEO Phong Le stated that the firm would only consider selling its Bitcoin holdings under very specific financial stress. Speaking on the What Bitcoin Did podcast, Le explained that a Bitcoin sale would only be triggered if the company’s stock fell below its net asset value (mNAV) and external capital became unavailable.
“If our mNAV drops below 1 and we can no longer raise money through equity or debt, then we’d have to consider selling some Bitcoin to protect shareholder value,” Le said. He emphasized that such action would be a last resort and is not part of the company’s current strategy.
The company’s operating model is based on issuing equity at a premium to mNAV and using the proceeds to buy Bitcoin. This approach increases the BTC held per share. As long as the premium remains, Strategy sees no need to sell its Bitcoin reserves.
Dividend Commitments and Financing Strategy
Strategy currently faces annual dividend obligations of $750 million to $800 million due to a set of preferred shares issued in recent years. These payments are planned to be covered by issuing equity when the share price is above mNAV, rather than selling BTC.
Phong Le acknowledged the pressure these obligations create. However, he reassured stakeholders that the firm is committed to its Bitcoin accumulation strategy. “Even in a bear market, we’re going to pay these dividends. That builds investor confidence,” Le stated.
He added that issuing new equity when mNAV is below 1 would be too dilutive. In that case, limited Bitcoin sales may be considered, but only under conditions where other funding options are exhausted.
BTC Credit Dashboard Launched
In response to recent volatility in digital asset markets and investor concerns, Strategy introduced a new “BTC Credit” dashboard. This tool aims to provide transparency into the company’s balance sheet, dividend coverage, and Bitcoin holding performance.
According to Strategy, the company can meet its dividend commitments even if Bitcoin’s price stays flat or declines. Le mentioned that coverage remains solid even if BTC drops to $25,000. The average cost of Strategy’s BTC purchases is around $74,000, according to company data.
This dashboard is intended to assure investors that the company is financially prepared to navigate adverse market conditions without needing to sell its core asset.
Long-Term Bitcoin Thesis Remains Unchanged
Despite stress-test scenarios, Strategy remains committed to its long-term belief in Bitcoin. Le said the firm continues to see Bitcoin as a limited-supply, global asset. “It’s non-sovereign, has a limited supply… people everywhere—Australia, the US, Ukraine, Turkey, Argentina, Vietnam, South Korea—everyone likes Bitcoin,” he noted.
The company’s strategy is to grow its Bitcoin holdings over time and maximize BTC per share, not to trade it based on price fluctuations. As long as mNAV remains above 1 and capital markets are accessible, Strategy has no intention to sell any of its Bitcoin.
The firm is currently the largest corporate holder of Bitcoin and is positioning itself to sustain that role through disciplined capital management and investor-focused transparency.
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