Strategy's business model depends on raising capital when shares trade at a premium to NAV and using those funds to acquire Bitcoin, thereby increasing holdings per share.
Bitcoin News
Strategy CEO Phong Le has confirmed the company would consider selling Bitcoin holdings only if its stock drops below net asset value while losing access to fresh capital. The revelation came during a recent What Bitcoin Did interview.
Le explained that if Strategy's multiple to net asset value falls under one and financing options disappear, unloading Bitcoin becomes mathematically justified to protect what he calls Bitcoin yield per share. He emphasized this would represent a last resort rather than a policy shift.
"I would not want to be the company that sells Bitcoin," Le stated, adding that financial discipline must override emotion when markets turn hostile. Strategy's business model depends on raising capital when shares trade at a premium to NAV and using those funds to acquire Bitcoin, thereby increasing holdings per share.
When that premium vanishes, selling a portion of holdings to meet obligations can be more acceptable to shareholders than issuing new equity that would prove more dilutive, according to Le. The company currently faces an annual dividend bill approaching $750 million to $800 million as recent preferred share issues mature.
Le plans to fund those payouts primarily through equity raised at a premium to mNAV. "The more we pay the dividends out of all of our instruments every quarter, that's seasoning the market to realize that even in a bear market, we're going to pay these dividends. When we do that, they start to price up," he explained.
Beyond balance sheet mechanics, Le defended the long-term thesis on Bitcoin as a scarce, non-sovereign asset with global appeal. "It's non-sovereign, has a limited supply… people in Australia, the U.S., Ukraine, Turkey, Argentina, Vietnam and South Korea—everyone likes Bitcoin," he added.
Strategy launched a new BTC Credit dashboard last week to reassure investors following Bitcoin's latest decline and a sell-off in digital asset treasury stocks. The company claims its debt remains well-covered if Bitcoin falls to its average purchase price of about $74,000.
The largest corporate holder of Bitcoin says it has enough dividend coverage for decades, even if Bitcoin price stays flat. Strategy maintains its obligations would still be
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