Strategy reveals under what circumstances it would sell bitcoin

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Strategy reveals under what circumstances it would sell bitcoin

The company Strategy has made it clear in the past that its policy is to maintain its bitcoin reserves (BTC) in the long term. However, its CEO, Phong Le, explained during an interview that there is a specific condition under which the company would consider selling part of those funds.

According to him, this would only happen if the MNAV ( net asset value per share, abbreviated as ), falls below 1 and the firm runs out of financing options.

That threshold would mark a scenario in which preserving immediate financial health would take precedence over its BTC accumulation strategy.

Phong Le emphasized that there is no current plan to sell bitcoin, although he acknowledged that they could make some specific sales in situations such as covering specific obligations or taking advantage of tax benefits.

Despite the explanation provided by the executive, the MNAV metric for Strategy already registered a drop below 1 in mid-November, and that circumstance did not lead to sales at that time. Strategy, however, continued to buy more BTC.

Selling bitcoin “would be a last resort”: the words of the CEO of Strategy

He detailed how the company evaluates a potential partial divestment of its position:

We can sell bitcoin, and we would do so if we needed to finance dividend payments below 1x. That is our main KPI. Below 1x MNAV, it is more efficient for the BTC yield to sell bitcoin to pay the dividends, and we would do so in that case.

Phong Le, CEO Strategy.

When talking about dividend payments, he explained that there is a point at which selling bitcoin “closes” from the mathematical side: when the MNAV 1x ( the one-to-one ratio between the book value of bitcoin and the market price of the stock ) breaks.

In other words: if the market starts to value the shares below the BTC they represent, Strategy enters a zone where maintaining the dividend without selling bitcoin becomes more difficult.

In that context, he said, the company prioritizes maintaining performance in BTC, that is, how many bitcoins correspond to each share, which is its main performance indicator (KPI, in English).

The central idea is simple: if the MNAV is healthy, the company avoids selling BTC and seeks other ways to raise money. But if it falls below the critical level, the situation changes.

MNAV acts as a thermometer: if it is above 1, the company is creating value relative to its bitcoin holdings; if it falls below, the market punishes the stock and makes it difficult to obtain capital without touching reserves.

From there, he delved deeper into the limit scenario:

If our MNAV falls below one and we have no other way to access capital, we would sell bitcoin. But it would be almost a last resort. It would be a last resort.

Phong Le, CEO Strategy.

Finally, the executive explained that a sale of BTC faces two planes: the mathematical, where it would be the rational option if conditions force it, and the narrative, where it could affect the image of Strategy as a bitcoin accumulator.

He added that there are useful technical sales in normal scenarios, such as disposing of BTC purchased at high prices to generate tax losses.

He also recalled the operation carried out in 2022, when the firm repurchased a bitcoin-backed loan at a discount, as an example of the flexibility with which they adjust their financial structure according to the market context.