Strategy's Contingency Plan: Selling Bitcoin as a Last Resort

In a recent interview, CEO Phong Le of Strategy detailed the company's approach to managing its Bitcoin holdings. He stated that selling Bitcoin would only be considered if the company's stock falls below its net asset value (mNAV) and they lose access to capital. This strategy aims to ensure the long-term stability of their investments while also maintaining a disciplined approach to market fluctuations.

Key Takeaways

Selling Bitcoin would only occur if mNAV drops below one and capital access is restricted.
This strategy is deemed a last resort rather than a regular policy.
Strategy faces substantial annual fixed payment obligations of around $750 million to $800 million.
The company aims to fund these obligations through equity raised when shares trade at a premium to mNAV.
A new BTC Credit dashboard has been launched to reassure investors of the company’s financial stability despite market volatility.

Strategy will sell Bitcoin as ‘last resort’ if mNAV drops, capital is unavailable: CEO

Strategy's Contingency for Selling Bitcoin

CEO Phong Le revealed in a recent interview that Strategy would sell Bitcoin only as a last resort, primarily if the company's stock dips below its net asset value (mNAV) and access to fresh capital diminishes. Speaking on the What Bitcoin Did podcast, Le mentioned that if the mNAV falls below one, selling Bitcoin becomes “mathematically” necessary to safeguard what he terms “Bitcoin yield per share.” However, he stressed that this would not be a shift in policy and emphasized the need for financial discipline over emotional reactions in challenging market scenarios.

Significant Dividend Obligations

This warning comes as the company faces considerable fixed payments connected to a series of preferred shares introduced this year. Le indicated that these annual obligations amount to about $750 million to $800 million as the latest issues come due. His plan includes funding these dividends primarily through equity raised at a premium over mNAV. “By consistently paying dividends from all our instruments quarterly, we are helping the market realize that even in tough times, we will meet these obligations, which should ultimately enhance our pricing,” he explained.

Bitcoin’s Distinct Asset Appeal

Aside from financial mechanics, Le defended Bitcoin's long-term value as a unique, scarce asset with widespread global appeal. “It’s a non-sovereign asset with a capped supply… people from Australia, the U.S., Ukraine, Turkey, Argentina, Vietnam, and South Korea — everyone has an interest in Bitcoin,” he noted.

New Dashboard to Enhance Investor Confidence

Recently, Strategy unveiled a “BTC Credit” dashboard aimed at reassuring investors following Bitcoin's latest price drop and a sell-off in digital asset treasury stocks. As the largest corporate holder of Bitcoin, Strategy asserts it has sufficient dividend coverage for decades, even if Bitcoin’s price remains stagnant. The company claims its debt is well-covered if Bitcoin's price drops to its average purchase price of approximately $74,000 and is still manageable even if it falls to $25,000.

Related Reading: 2026: A Year for Pragmatic Privacy in Crypto — Exploring Trends with Canton, Zcash, and Beyond