Michael Saylor, executive chairman of Strategy (formerly MicroStrategy), has downplayed concerns that the company might sell its bitcoin holdings to fund dividends. In an interview with CoinDesk, Saylor described any potential sale as “inconsequential” for the broader bitcoin market.
Negligible Impact on Liquidity
Saylor explained that even if Strategy were to sell enough bitcoin to cover all dividend obligations, the effect on price would be minimal due to bitcoin’s deep liquidity. “We would buy 20 bitcoins for every one we sell,” he emphasized, reinforcing the company’s long-term accumulation strategy. Strategy holds over 210,000 BTC, making it the largest corporate bitcoin holder globally.
Leveraging Equity Premium for Profitable Swaps
Addressing criticism over the timing of bitcoin purchases, Saylor clarified that the company capitalizes on its own stock’s equity premium during market rallies. By issuing shares or convertible notes when MSTR is trading at a premium, Strategy executes profitable swaps to acquire more bitcoin at favorable prices.
STRC Preferred Stock: Perpetual Capital
Saylor also highlighted the robustness of Strategy’s preferred stock, Stretch (STRC), which is structured as a perpetual instrument with no redemption rights. This design eliminates liquidity constraints, allowing the company to manage long-term capital without pressure from short-term redemptions. STRC provides a stable funding base for continued bitcoin accumulation.
Market observers view Saylor’s comments as an effort to reassure investors worried about potential bitcoin sell pressure from dividend payments. The executive’s stance strengthens the narrative that Strategy remains committed to its bitcoin-first treasury strategy, using any sale as an opportunity to buy back more.