Jiang Zhuoer, founder of BTC.TOP, China's largest Bitcoin mining pool, took to X this week to cool market fears that Strategy (formerly MicroStrategy) might be forced to sell its Bitcoin holdings on a large scale. He argued that even if Bitcoin drops to $30,000, Strategy's debt-to-asset ratio would only rise from the current 5% to 10%, far from any level that would force a sell-off. The company's 'never sell' narrative, he said, remains intact for the near term.
Fidelity Custody Wallet Outflow of 45K BTC: No Need for Panic
The panic originated from on-chain estimates that roughly 45,000 BTC (worth about $3 billion) moved out of a Fidelity custody wallet between May 28 and June 1. Market speculation quickly pinned the transfer on Strategy selling its holdings at an average price of roughly $66,000. But Jiang noted that the same wallet also holds Fidelity's own spot Bitcoin and Ether ETF assets. Attributing the outflow solely to Strategy, he said, is pure conjecture—not a confirmed sale.
He called the panic 'overblown.' Bitcoin had just suffered a sharp sell-off last week, triggered by news that Strategy had sold some BTC for the first time since 2022. The price briefly touched $62,000, hitting a six-month low. According to CoinDesk, Bitcoin was trading around $63,400 on Monday, down nearly 10% over the past week.
Debt Is Only 5% of Assets; Even at $30K It Reaches Just 10%
Jiang's analysis centers on Strategy's balance sheet. He estimates total liabilities account for only 5% of the company's Bitcoin asset value. Even if Bitcoin plunges from the current ~$62,900 to $30,000, that ratio would only rise to about 10%. For a publicly traded company holding over 770,000 BTC with assets exceeding $40 billion, such leverage is far below any danger zone.
In other words, Strategy faces no imminent pressure to sell Bitcoin to repay debt. Any argument that price declines will trigger a 'massive liquidation' lacks balance-sheet support. This aligns with earlier analysis that fears of a 'LUNA-style death spiral' were likely exaggerated—Strategy's debt structure is fundamentally different from algorithmic stablecoins.
STRC Preferred Stock: Selling Old to Buy New, Net Buyer Status Unchanged
Jiang also detailed the financial logic behind STRC, Strategy's primary fundraising tool. STRC pays an annual dividend of 11.5%, distributed monthly. Strategy sells its lowest-cost, longest-held Bitcoin to book a profit and cover the dividend, while proceeds from newly issued STRC continue to buy fresh Bitcoin.
The key point: 'As long as the pace of buying exceeds the pace of selling, Strategy remains a net buyer.' Jiang further noted that STRC holders are actually more worried about the company refusing to sell and defaulting on dividends than about selling itself. By demonstrating a willingness to sell to meet obligations, Strategy removes the biggest uncertainty for investors—a positive signal for STRC pricing.
Counterargument from Long-Bear Crowd
Not everyone shares Jiang's optimism. Some analysts argue that in a prolonged bear market, Strategy's interest expenses would accumulate, eventually forcing larger Bitcoin sales regardless of management's intent. The static debt-to-asset ratio test, they say, ignores dynamic cash flow pressure. If STRC issuance slows or dividend payments drain inventory, Strategy's 'never sell' myth could still be tested.
This debate unfolds as Bitcoin fell nearly 10% last week on the Strategy selling news. But Jiang's perspective from China's mining industry offers a different lens from Wall Street analysts: Asia's mining sector broadly sees Strategy's balance sheet as far healthier than market perception, and the recent panic selling may actually present a buying opportunity after the overreaction.