Strategy CEO Phong Le Clarifies Strategy Bitcoin Sale Conditions

• Strategy would sell Bitcoin only if stock trades below net asset value and other funding options fail.
• CEO Phong Le said decisions focus on increasing Bitcoin per Share for common shareholders over time.
• Michael Saylor clarified Strategy remains a net Bitcoin buyer despite discussion of possible limited BTC sales.

Strategy CEO Phong Le said the company would only sell Bitcoin under limited financial conditions despite recent market concerns. Speaking on CNBC, Le explained that any BTC sale would need to improve the firm’s “Bitcoin per Share” metric while supporting obligations tied to dividends, taxes, or liquidity needs. The clarification followed comments from Executive Chairman Michael Saylor that triggered speculation about potential Bitcoin sales.

Bitcoin Sales Limited to Specific Scenarios

According to Phong Le, Strategy would first compare Bitcoin sales against other funding methods before acting. The company would prioritize outcomes benefiting common shareholders through higher Bitcoin exposure per share.

Le said two conditions must align before any meaningful Bitcoin sale occurs. First, Strategy’s stock would need to trade below its modified net asset value.

Second, the company would need to exhaust alternatives including debt issuance and equity raises. Only then would Bitcoin sales become an option.

Le stated the company uses “Bitcoin per Share,” or BPS, as its core capital allocation metric. Management evaluates whether each decision increases Bitcoin exposure attached to outstanding shares.

Additionally, Strategy could use limited BTC sales to support the 11.5% dividend tied to its STRC preferred stock. The company may also use sales for tax optimization purposes.

Saylor Clarifies “Never Sell” Position

Meanwhile, Michael Saylor addressed market reactions following his earlier comments about selling Bitcoin for dividends.

Saylor acknowledged his “never sell” Bitcoin stance fueled concern after discussing possible sales during Strategy’s earnings call. However, he clarified the company still intends to remain a net Bitcoin buyer.

He explained that Strategy could theoretically sell one Bitcoin while purchasing significantly more afterward. According to Saylor, the broader accumulation strategy remains unchanged.

Strategy currently holds 818,334 BTC, making it the largest public corporate Bitcoin holder.

Cash Buffer Reduces Immediate Pressure

Notably, Le said Strategy built a multi-year U.S. dollar cash reserve covering roughly two to three years of preferred dividends.

The company also recently completed a $1.44 billion equity raise within eight and a half days. Le described the capital raise as a deliberate move designed to avoid selling Bitcoin.

According to Le, Strategy’s stock trading above net asset value allows the company to raise capital without reducing Bitcoin exposure per share.

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