Strategy CEO Clarifies Bitcoin Sale Conditions: Will Only Sell When Beneficial to Shareholders

On May 10, Strategy CEO Phong Le confirmed that the company will only sell Bitcoin under specific conditions. This follows comments from Executive Chairman Michael Saylor, who hinted at the possibility of selling Bitcoin to pay dividends, which led to a 4% drop in MSTR’s stock price. Le stated that the decision to sell is primarily related to the Series A perpetual preferred stock Stretch (STRC, with a dividend rate of 11.5%). The company will execute sales only when it is more beneficial for shareholders to sell Bitcoin than to issue stock for dividend payments, with specific trigger conditions being a stock price below book value or mNAV below approximately 1.22. The second condition involves tax management, including realizing deferred income or capturing tax losses. Le emphasized that the company’s leverage is around 10%-15%, with a magnification rate of about 35%, indicating manageable financial conditions. Strategy currently holds 818,334 BTC at an average price of approximately $75,537, making it the largest publicly traded holder of Bitcoin globally. Le pointed out that Bitcoin’s daily trading volume exceeds $60 billion, while the company’s annual dividends are only about $1.5 billion, indicating that liquidity is not an issue, and he stated, ‘I believe in mathematics rather than ideology.’