Michael Saylor Claims Strategy May Sell Bitcoin in Extreme Cases
Michael Saylor stated that concerns about Strategy (formerly MicroStrategy) being forced to sell Bitcoin during a price drop are "unfounded," and the company will continue to buy Bitcoin quarterly.
Saylor emphasized that the company's net leverage is only half that of investment-grade companies, with cash reserves covering 2.5 years of dividends, and it can address pressure through refinancing debt rather than selling coins.
Previously, CEO Phong Le mentioned that if mNAV falls below 1 and new capital cannot be obtained, the priority would be to protect "earnings per share from Bitcoin" and potentially limit sales. However, Saylor reiterated the strategy of long-term holding and continuous buying.
Source: Public Information
ABAB AI Insight
Michael Saylor has transformed MicroStrategy (now Strategy) into a Bitcoin proxy investment tool since 2020, accumulating over 600,000 BTC through convertible bonds and ATM equity financing. He has repeatedly claimed to "hold forever" during Bitcoin downturns. In 2024-2025, he aims to attract retail and institutional funds through the "Bitcoin earnings" concept, pushing MSTR stock price far beyond Bitcoin performance.
On the capital path, Strategy directly converts equity and debt financing into Bitcoin holdings, amplifying leverage through high-premium stock issuance. This move aims to position the company as a Bitcoin price amplifier and institutional entry point; the statement about potential sales in extreme cases is intended to maintain rational decision-making space for shareholders while avoiding market panic and runs.
Similar to Tesla's brief Bitcoin sale in 2022 to address liquidity pressure, and other companies' Bitcoin treasury hedging behaviors during bear markets, Strategy is currently undergoing a stress test phase transitioning from "infinite hoarding" to "dynamic capital management" for corporate Bitcoin holdings.
Essentially, this is about capital concentration: Strategy reconstructs its corporate capital structure with Bitcoin as the core asset, concentrating retail and leveraged funds into a single crypto exposure, amplifying gains in bull markets while facing redemption and valuation pressures in bear markets. Mechanically, it aims to maintain confidence through open and transparent communication, shifting Bitcoin from personal assets to institutional-grade corporate treasury standards.
ABAB News · Law of Cognition
Never selling is a belief; rational selling is a mechanism. Long-term victory belongs to those who balance both. Leverage amplifies gains but also the risks of forced adjustments; there is no free lunch in capital. No matter how much the company hoards coins, the ultimate pricing power remains in the hands of the market that can continuously provide liquidity.