- Strategy will sell BTC only if its stock drops below mNAV and new capital becomes unavailable.
- The firm prioritizes protecting Bitcoin yield per share by avoiding dilution and forced sales.
- Strong BTC-to-debt coverage and new credit metrics support stability despite market declines.
Strategy stated that it will only consider selling part of its Bitcoin holdings if its stock price falls below its market net asset value and the company loses access to new capital. The firm said this rule protects Bitcoin yield per share and prevents forced sales during stressed markets.
Strategy Sets Clear Conditions for Possible Bitcoin Sales
Strategy CEO Phong Le said the company will consider selling Bitcoin only when two events occur at the same time. He stated that the stock must fall below its market net asset value and the firm must lose access to new capital. He called this scenario “mathematically” necessary because it protects Bitcoin yield per share. Le also said the rule serves as a last step rather than a shift in the firm’s Bitcoin approach.
The company raises capital when its stock trades above mNAV, and it uses that capital to acquire more Bitcoin. Le explained that if the premium disappears, issuing equity may cause more dilution than selling a small portion of Bitcoin to meet obligations. He said these sales would remain limited and used only to prevent forced liquidations during weaker markets.
A past case involving a mining company showed how poor market conditions can pressure firms to sell Bitcoin at lower prices. Strategy wants clear rules to avoid that type of forced sale and reduce stress during market drops.
Debt Pressure and New Credit Dashboard After Market Decline
Strategy faces preferred-share dividend payments of about $750 million to $800 million each year. Le said the plan is to fund these payouts with equity raised above mNAV because that approach protects long-term value. He added that consistent payments support market trust during different market cycles.
The firm introduced a BTC Credit dashboard after the recent decline in Bitcoin and digital-asset stocks. Strategy reported that its Bitcoin holdings cover its convertible debt about 5.9 times at an average cost of $74,000. The coverage remains near two times even at $25,000 per Bitcoin.
The company said this cushion supports its ability to handle long periods of low prices and strengthens its financial position. Strategy repeated that it will sell Bitcoin only if its stock trades below mNAV and if new capital becomes unavailable, as the firm seeks to protect its Bitcoin yield per share and avoid forced sales.
