MicroStrategy Reveals It Will Sell Bitcoin Under These Conditions

2h ago•

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MicroStrategy CEO Phong Le confirmed the Bitcoin (BTC) treasury firm will sell BTC only under specific conditions.

The remarks followed Executive Chairman Michael Saylor’s earlier suggestion that Strategy might sell Bitcoin to cover dividends. The comment triggered a 4% drop in MSTR shares and rattled the market.

Stretch (STRC) Reshapes MicroStrategy’s Bitcoin Playbook

The first condition relates to Strategy’s Series A Perpetual Stretch Preferred Stock, also known as Stretch (STRC). The instrument carries an 11.5% dividend.

Stretch shifted the calculus, according to Le. The CEO said in a CNBC interview that the product opened strategic optionality.

“We have raised $8.5 billion in 10 months, and with that, we look at optionality, we look at our strategy, and we say now let’s look at Bitcoin and see if it can provide us value from time to time to sell it,” Le mentioned.

This lets Strategy weigh Bitcoin sales against equity issuance for dividends. He emphasized that the firm would only sell BTC to fund yield payments if the move is accretive to shareholders.

“That’s defined as accretive to Bitcoin per share, and the times it’s accretive are when the book value of our company is trading below the price, or the price is trading below the book value, or mNAV is below right now 1.22,” he said.

The second condition covers tax management, with the firm prepared to sell to capture deferred gains or tax losses. Meanwhile, Le also defended the company’s financial position, stating that Strategy’s leverage remains manageable.

“Right now, our leverage is right around 10-15%, amplification is about 35% and if you compare that to typical companies, we would be rated just based on those KPIs as an investment-grade stock, so I don’t see that being an issue right now, and we manage it closely…we manage our leverage and amplification level very thoughtfully,” he added.

The pivot reverses Saylor’s “never sell” stance. Strategy first signaled the change during its Q1 2026 earnings call. It disclosed a net loss of $12.54 billion. Le framed the shift as a pragmatic calculation rather than an ideological retreat.

“Ultimately, I believe in math over ideology,” Le remarked.

MicroStrategy Downplays Market Impact of Potential Bitcoin Divestments

Strategy is the largest publicly traded corporate holder of Bitcoin. The firm currently holds 818,334 BTC acquired at an average purchase price of around $75,537 per coin.

Addressing concerns about liquidity and the market impact of potential Bitcoin sales, Le argued that Strategy’s dividend obligations are relatively small compared to Bitcoin’s daily trading volume.

“Bitcoin trades north of $60 billion a day,” he noted. “If our entire annual dividend is $1.5 billion that we have to pay on a daily basis, we are talking about percentage points or basis points of Bitcoin liquidity.”

Le added that despite Strategy owning nearly 4% of Bitcoin’s circulating supply, the company does not believe its trading activity significantly moves the market in either direction.