Strategy CEO: "Even if Bitcoin is sold, the market won't be shaken"...Directly refutes sell-off fears

▲ Strategy (MSTR), Bitcoin (BTC)/AI generated image

Strategy, the world's largest publicly traded Bitcoin (BTC) holding company, announced that it could sell Bitcoin under certain conditions. However, Phong Le, Strategy's CEO, emphasized that the company's sale of Bitcoin would not significantly impact market prices.

Cointelegraph reported on May 9 that Le explained the conditions under which Strategy could sell some of its Bitcoin holdings during a CNBC interview. Le stated that the company might sell Bitcoin to pay dividends on Series A Perpetual Stretch Preferred Stock (STRC) or to defer/offset taxes.

STRC is a corporate credit product that pays an 11.5% dividend to holders. Le stated that if a point comes when selling Bitcoin is more favorable for the Bitcoin per share metric and common stock shareholders than issuing shares to pay dividends, the company would do so. He made it clear that he believes in mathematics over ideology and would only consider selling if it benefits shareholder value.

Le explained that even if Bitcoin is sold to cover the yield payable to credit product holders, such a sale would be limited to cases where it brings an accretive effect to Strategy shareholders. Here, an accretive effect means a situation where the company's Bitcoin per share metric increases.

These remarks came after Strategy co-founder Michael Saylor mentioned that the company could periodically sell some of its Bitcoin. Saylor's statements raised concerns among Bitcoin investors about the potential impact of Strategy's sales on the price.

Saylor stated during Tuesday's earnings call that there's a possibility of selling some Bitcoin as a source for dividends to signal the market. He explained that if Bitcoin rises by more than 2.3% annually, Strategy could continue paying dividends without diluting shareholder equity through stock sales. He added that the company could stop selling MSTR common stock immediately, and dividends could be funded by selling Bitcoin.

Strategy currently holds 818,334 BTC, with a value exceeding $66 billion at the time of writing. Cointelegraph reported that Strategy is the largest Bitcoin treasury company among publicly traded firms.

Concerns exist in the market that Bitcoin sales by treasury companies could act as selling pressure and negatively affect Bitcoin prices. However, Le believes that given Bitcoin's daily trading volume of approximately $60 billion, the market can absorb the more than $1 billion in annual dividends that Strategy is obligated to pay.

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