MicroStrategy, now known as Strategy, has revealed the specific circumstances under which it might divest from its substantial Bitcoin (BTC) holdings. In a recent interview with What Bitcoin Did, CEO Phong Le articulated that the company would only contemplate selling its Bitcoin if its stock price dipped below its net asset value while simultaneously losing access to new capital.
Le emphasized that such a move would be regarded as a last resort, primarily aimed at safeguarding the company”s critical metric of Bitcoin yield per share. He noted, “There”s the mathematical side of me that says that would be absolutely the right thing to do. There is the emotional side of me, the market side that says, we don”t want to really be the company that”s selling Bitcoin.”
Discussion of a potential sale arises as Strategy”s extensive Bitcoin treasury continues to yield impressive gains. Currently, the firm holds 649,870 BTC, with a total value of approximately $59.33 billion. The average purchase cost per coin stands at $74,430, resulting in a profit margin of around 22.66% based on present valuations.
Despite this appreciation, Strategy”s equity metrics indicate that its stock trades below the value of its underlying Bitcoin assets. The firm”s market capitalization is reported at $51 billion, increasing to $57 billion on a diluted basis, while its enterprise value is approximately $66 billion.
Strategy”s operational model fundamentally relies on maintaining its stock price at a premium to its net asset value. This premium allows the company to raise equity and channel those proceeds into further Bitcoin acquisitions, thereby enhancing BTC per share. However, should this premium dissipate and new equity become excessively dilutive, Le mentioned that selling Bitcoin to fulfill obligations could become a rational fallback, even if it contradicts the long-term accumulation strategy.
Amid recent fluctuations in Bitcoin prices, Strategy has faced increased scrutiny from Wall Street, with some analysts urging the company to consider liquidating a portion of its BTC holdings. This pressure is compounded by rising fixed payouts tied to preferred shares issued in 2025, which may necessitate annual obligations of approximately $750 million to $800 million as various series mature.
To address these financial commitments, the company aims to primarily rely on equity issuance while its stock is trading at a premium, a strategy that it believes bolsters investor confidence.
