Strategy may sell Bitcoin if mNAV falls and capital dries up
Strategy would consider selling Bitcoin only if its shares trade below net asset value and the company loses access to new financing, CEO Phong Le said in a recent interview, characterizing any sale as a last-resort financial decision rather than a change in policy.
Speaking on the What Bitcoin Did show, Le said that if the company’s multiple to net asset value (mNAV) fell below one and funding options were unavailable, selling Bitcoin would be “mathematically” justified to protect “Bitcoin yield per share.” He added that while the company does not want to sell, financial discipline would take precedence if market conditions deteriorate.
Strategy’s approach involves issuing equity when its stock trades at a premium to NAV and using the proceeds to purchase Bitcoin (BTC), increasing BTC held per share. If that premium disappears, Le said selling a portion of holdings to meet obligations may be preferable for shareholders if issuing new equity would be more dilutive.
Strategy’s Bitcoin holdings. Source: BitcoinTreasuries.NET
Strategy faces $800 million in annual dividend obligations
The comments come as investors assess the company’s growing fixed payments tied to a series of preferred shares issued this year. Le estimated annual obligations at approximately $750 million to $800 million as recent issuances mature. He said the plan is to fund these payouts primarily with equity raised at a premium to mNAV, adding that consistently paying dividends each quarter, even in a bear market, should help the market reprice the instruments.
Le also reiterated his long-term view of Bitcoin as a scarce, non-sovereign asset with global appeal, citing interest across Australia, the US, Ukraine, Turkey, Argentina, Vietnam and South Korea.
Strategy launches BTC credit dashboard
Last week, Strategy introduced a “BTC Credit” dashboard to address investor concerns following Bitcoin’s recent decline and a sell-off in digital-asset treasury stocks. The company, which it says is the largest corporate holder of BTC, stated it has sufficient dividend coverage for decades even if Bitcoin’s price remains flat.
Strategy said its debt remains well covered if BTC falls to its average purchase price of about $74,000 and would still be manageable even at $25,000.
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