The five key value reasons for corporate Bitcoin selling

Article by: Allard Peng

Translated by: Saoirse, Foresight News

Recently, Strategy announced that it may sell some of its Bitcoin to achieve operational goals, which has caused a stir in the market. The company has always maintained a stance of never selling its coins; Saylor even joked that even if assets are sold, Bitcoin should not be sold.

In fact, for companies holding Bitcoin reserves, selling coins is always an alternative business strategy. "Never selling" is just a reflection of long-term investment philosophy, aligning with the widespread long-term investment mindset in the crypto space. Even though the market generally advocates holding coins, in many scenarios, selling Bitcoin remains a reasonable choice.

On a personal level, selling coins is often used to improve living conditions, such as buying a house, traveling, children’s education, or covering large unexpected medical expenses. The core purpose of all corporate decision-making is to enhance shareholder equity.

In the first quarter of 2026, Bitcoin miners sold a total of 25,376 Bitcoins, with the proceeds used to transition into artificial intelligence businesses. Management judged that the risk-return ratio of AI projects was higher than that of Bitcoin holdings. This leads to a fundamental logic: when there are investment targets with higher returns, selling Bitcoin to swap assets is reasonable. For Bitcoin-holding companies like Strategy, selling coins can also create real value, for five main reasons.

Reason 1: Increase Bitcoin holdings per share

The amount of Bitcoin held per share is the core goal of a company's reserve asset management; a phased increase in this indicator indicates Bitcoin’s yield. The usual method is to buy Bitcoin to raise total holdings, or to buy back shares to reduce circulating stock, both of which can increase the Bitcoin holdings per share.

If the company's stock price is below the value of its corresponding Bitcoin assets, selling Bitcoin to buy back shares will ultimately increase Bitcoin holdings per share, with the reduction in Bitcoin holdings being less than the decrease in share capital. When operational cash flow cannot cover fixed expenses such as preferred dividends and bond interest, and the stock price is undervalued, selling Bitcoin to pay off debt and interest can minimize the shrinkage of Bitcoin holdings per share.

Reason 2: Optimize capital structure and reduce financing costs

Credit rating agencies profoundly influence capital market fund flows; following their assessment rules can help companies secure smooth financing. Previous reports analyzed feasible ways to improve credit ratings, and a good rating can effectively lower a company's financing costs.

S&P recognizes the value of cash reserves, and Strategy adopted this approach. By January 2026, the company's cash reserves reached $2.2 billion, significantly alleviating investor concerns about the company's ability to pay dividends on preferred shares.

Companies can sell Bitcoin to supplement cash reserves, meeting capital market requirements, and thus issue bonds at lower costs. Additionally, selling Bitcoin to repay debt can reduce senior liabilities and enhance the attractiveness of preferred stock financing.

In the long run, the interest rate gap will widen due to compound interest effects, and low-cost debt can reduce operational burdens and increase revenue.

Reason 3: Legal tax planning

Currently, there are no restrictions on Bitcoin wash sales in the U.S.; companies can sell Bitcoin at a loss on paper, then repurchase it to lower the tax basis of assets, thereby deducting taxes. Strategy used this tactic during the market downturn in 2022.

This tax benefit is still in effect. Companies can combine loss offset policies with stock buybacks, debt repayment, and other operations to achieve multiple benefits.

Reason 4: Break through negative market rumors

The Bitcoin industry is relatively young, and various negative rumors are rampant. False claims suggest that if Strategy sells Bitcoin, it will directly impact the entire crypto market and overturn the company's holding operation model.

If the company sells 50k Bitcoins and neither the market price nor its stock price experiences significant fluctuations, it can dispel rumors and gain market acceptance for the company's Bitcoin asset management approach.

The market has self-regulating capabilities; most media and social media influencers generate hype, while professional investment institutions base decisions on actual research and are not easily swayed by one-sided opinions. This is the most subjective of the five reasons.

Reason 5: Discounted repurchase of preferred shares

This strategy is rarely mentioned in the market. When the price of floating-rate financial products deviates significantly from face value, companies can buy back these products at prices well below face value to settle high debt levels.

This operation is equivalent to closing out their own preferred stock short positions without interest or borrowing costs. For example, with STRC products, issued at a face value of $100, if the price drops to $82, the company can use Bitcoin proceeds to buy back shares at a low price, earning an $18 per share difference, and this profit is tax-free.

Price trend of STRC since its IPO

A decline in preferred stock prices does not necessarily coincide with a sharp drop in Bitcoin prices; leveraged trading can trigger chain reactions of selling. Companies can buy back shares at low prices to avoid subsequent dividend increases that could drain funds.

Summary

Selling Bitcoin should not be viewed as a negative signal; in many scenarios, it can protect the interests of the company and shareholders. Bitcoin has monetary attributes and can provide flexible capital allocation; only by using assets rationally can their maximum value be realized.