Strategy CEO Phong Le addressed market speculation on CNBC, laying out the exact conditions under which the company would consider selling its Bitcoin holdings. His remarks came after comments from Executive Chairman Michael Saylor triggered worries about potential liquidation.
Two Conditions Must Align Before Selling
Le stated that any meaningful Bitcoin sale would require two conditions to be met simultaneously. First, Strategy's stock price must trade below its modified net asset value. Second, the company must have exhausted alternative funding methods including debt issuance and equity raises. Only then would selling Bitcoin become an option.
The CEO emphasized that management evaluates every capital allocation decision through the lens of “Bitcoin per Share” (BPS). The core question is whether a move increases the Bitcoin exposure attached to each outstanding share. According to Le, selling Bitcoin under normal circumstances would hurt that metric.
Limited Exceptions for Dividends and Taxes
Despite the accumulation bias, Le confirmed that Strategy could use limited BTC sales to support the 11.5% dividend tied to its STRC preferred stock, as well as for tax optimization. However, the company built a multi-year U.S. dollar cash reserve covering roughly two to three years of preferred dividends, reducing the need to sell.
Notably, Strategy recently completed a $1.44 billion equity raise within eight and a half days. Le described the move as a deliberate effort to avoid selling Bitcoin while maintaining capital flexibility.
Saylor Clarifies “Never Sell” Stance
Michael Saylor acknowledged that his earlier discussion of possible Bitcoin sales during the earnings call alarmed some investors. He clarified that the company still aims to remain a net Bitcoin buyer. Theoretically, Strategy could sell one BTC while buying significantly more shortly after. “The broader accumulation strategy remains unchanged,” he said.
With a treasury of 818,334 BTC, Strategy remains the largest public corporate holder of Bitcoin. Le highlighted that the stock's premium to net asset value allows the firm to raise equity without diluting Bitcoin per share. “Selling Bitcoin is the last resort,” he concluded.