Boldly put, the CEO of Strategy has declared that the company would only contemplate selling its Bitcoin holdings as a measure of last resort—specifically if its market-to-net asset value (mNAV) ratio dips below one and fresh capital becomes unattainable. Phong Le explained in a recent interview on the What Bitcoin Did show that, under such financial strain, selling Bitcoin becomes a mathematically sensible action to safeguard what he terms “Bitcoin yield per share.” But here's where it gets controversial: he emphasized this wouldn’t mark a change in company policy, rather a reluctant move forced by market conditions. "I certainly would not want to be the company that sells Bitcoin," Le admitted, stressing that prudent financial discipline must take precedence when markets turn adverse.
Strategy’s business model is built on a seemingly clever cycle: the company raises funds by issuing shares when its market price trades at a premium above net asset value. These proceeds are then used to buy more Bitcoin, effectively increasing the Bitcoin holdings per share for investors. However, if that premium vanishes, the CEO suggests that selling a chunk of Bitcoin to meet financial obligations could be in shareholders' interests if raising equity would otherwise dilute value more significantly. And this is the part most people miss—it's a delicate balancing act between maintaining asset value and managing dilution risks.
Investors are now closely eyeing Strategy as it faces a hefty annual dividend responsibility, estimated by Le to be near $750 million to $800 million, owing to a complex arrangement of preferred shares issued this year and maturing soon. The company plans to cover these payouts primarily through equity raised at favorable premiums to its mNAV. Le highlighted that by consistently paying dividends from all financial instruments quarterly, the market starts expecting reliable payment even during tough times, which in turn can help elevate the stock’s pricing.
Beyond the financial juggling, Le staunchly defends the longer-term premise for Bitcoin itself. He points to Bitcoin’s unique scarcity and non-sovereign status, which grants it widespread global appeal. According to him, people from vastly different regions such as Australia, the United States, Ukraine, Turkey, Argentina, Vietnam, and South Korea are drawn to Bitcoin’s qualities, underpinning its value proposition.
In a bid to further reassure investors shaken by Bitcoin’s recent price declines and the consequential dips in digital-asset treasury stocks, Strategy rolled out a “BTC Credit” dashboard last week. This tool aims to demonstrate the company’s confidence in covering dividends for years ahead even if Bitcoin’s price remains flat. Remarkably, the company asserts its debt obligations would be comfortably managed if Bitcoin’s price falls to roughly $74,000—the average price at which it was purchased—and would remain manageable even if prices plummet further to around $25,000.
But does this strategy truly inspire confidence everywhere, or are there skeptics who worry that selling Bitcoin could trigger a slippery slope? Do you agree that maintaining strict financial discipline justifies such tough decisions, or should Bitcoin holdings be preserved at all costs? Share your thoughts below—this is a debate worth having.
