TLDR
- Strategy CEO Phong Le says Bitcoin sales would only occur if mNAV falls below 1.0 and capital markets close
- The company currently operates at 0.96 mNAV, trading below its Bitcoin asset value
- Annual dividend obligations total $750-$800 million on preferred shares
- Strategy holds approximately 650,000 BTC as the world’s largest corporate holder
- Michael Saylor’s recent “green dots” comment triggered market speculation about potential liquidation
Strategy CEO Phong Le acknowledged the company could sell Bitcoin for the first time in its history. Speaking on What Bitcoin Did, Le outlined specific circumstances that would force the Bitcoin treasury company to liquidate holdings.
MicroStrategy Incorporated, MSTR
The trigger involves two factors working together. Strategy’s stock must trade below net asset value while the company loses access to capital markets. Only then would Bitcoin sales become necessary.
Le called it a “mathematically justified” decision rather than an emotional one. The move would protect what he terms “Bitcoin yield per share” when other options disappear.
Strategy built its business on buying and holding Bitcoin. The company now owns roughly 650,000 BTC. Le emphasized selling remains a last resort option, not a strategy shift.
“I would not want to be the company that sells Bitcoin,” Le said. But he added that financial discipline must take priority when markets turn against the company.
The mNAV Problem
Strategy’s multiple to net asset value currently reads 0.96. This means investors value the company’s stock below the Bitcoin it actually holds. That creates problems for Strategy’s funding model.
The company raises capital by selling shares when they trade at a premium to NAV. It uses that money to buy more Bitcoin, increasing holdings per share. When shares trade at a discount, this system breaks down.
Le said if the mNAV stays below 1.0 and financing channels dry up, selling Bitcoin protects existing shareholders. Issuing new shares at a discount would dilute ownership even more than selling assets.
The company faces $750-$800 million in yearly dividend payments on preferred shares. These fixed costs must be covered whether Bitcoin rises or falls. Le plans to fund dividends through equity sales when possible.
Market Reaction to Green Dots
Michael Saylor stirred controversy with a tweet about adding “green dots” to his Bitcoin tracker. He has always used orange dots to mark Strategy’s Bitcoin purchases.
Investors interpreted green as a signal for potential sales. Some analysts view it as preparation for a major announcement. Others think it might relate to stock buybacks instead of Bitcoin liquidation.
The tweet arrived as Bitcoin dropped below $90,000. Combined with Le’s podcast appearance, it created uncertainty about Strategy’s commitment to holding Bitcoin forever.
Credit Dashboard Launch
Strategy released a new credit dashboard last week to address investor concerns. The tool demonstrates the company can meet obligations even if Bitcoin prices remain flat or decline further.
Strategy says its debt stays manageable if Bitcoin falls to its average purchase price near $74,000. The company projects it could handle Bitcoin at $25,000 while still covering commitments.
Le defended Bitcoin’s fundamental value during the interview. He cited global demand and limited supply as core strengths. “People in Australia, the US, Ukraine, Turkey, Argentina, Vietnam and South Korea — everyone likes Bitcoin,” he said.
Strategy’s model depends on maintaining market access. When the premium disappears and capital markets shut down, the company runs out of options. Le’s comments suggest management is preparing for different scenarios.
The 0.96 mNAV reading puts Strategy in a tight spot. Both Bitcoin prices and the stock price need recovery to avoid potential forced sales. Le made clear the decision would be based purely on numbers, not Bitcoin ideology.
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