Strategy CEO Phong Le said the company would consider selling its Bitcoin
Speaking on the What Bitcoin Did podcast, Le explained that in such a case, selling some Bitcoin would make financial sense to protect what he called the “Bitcoin yield per share”.
Le made it clear that this would be a last option, not a change in company direction. He emphasized that financial discipline must outweigh emotion when the market becomes difficult.
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The company’s approach relies on selling shares when they trade above the firm’s net asset value. The raised funds are then used to buy more Bitcoin, increasing the amount held per share.
When that stock premium disappears, and new capital cannot be raised, Le said selling a small part of the company’s Bitcoin could make sense if issuing more shares would reduce shareholder value.
Investors have been watching the company’s growing financial obligations, especially after new preferred shares were introduced earlier this year.
Le estimated annual payments tied to these instruments at around $750 million to $800 million as they mature. He noted:
The more we pay the dividends out of all of our instruments every quarter, that’s seasoning the market to realize that even in a bare market, we’re going to pay these dividends. When we do that, they start to price up.
Recently, Willy Woo shared his view that Strategy is not at risk of selling its Bitcoin holdings during the next major market downturn. What did he say? Read the full story.
