Bitcoin prices have come under renewed pressure in recent days, reigniting debate around Strategy’s balance sheet and the possibility of further sell-offs. Amidst this climate, Jiang Zhuoer, CEO of China’s major mining pool BTC.TOP, argued that it is unlikely the company will make radical changes to its current strategy, even if Bitcoin were to fall to $30,000.
Fidelity wallet outflows fuel speculation
The discussion gained momentum after an on-chain analyst revealed that roughly 45,000 Bitcoin, worth about $3 billion, had exited a Fidelity custody wallet between May 28 and June 1. It was suggested that these assets may have been gradually sold at an average price of about $66,000 per Bitcoin.
However, the same wallet reportedly also held assets for Fidelity’s spot Bitcoin and Ether exchange-traded funds (ETFs). Therefore, linking these outflows directly to Strategy is seen more as an inference than a confirmed sale. On Sunday, Jiang Zhuoer took to social media in Mandarin to say these claims are being exaggerated.
According to Jiang Zhuoer, Strategy’s total debt accounts for only around 5% of its overall assets. He argued that even if Bitcoin’s price dropped from $62,900 to $30,000, that figure would rise only to 10%, meaning the popular market perception that Strategy will not sell its BTC is unlikely to change soon.
As the head of BTC.TOP, Jiang is a well-known figure in the crypto mining space. He emphasized that Strategy’s balance sheet is relatively resilient against short-term market fluctuations, which limits the likelihood of a forced sale in the near term.
Debate over STRC shares and dividends
Jiang also defended the mechanism behind Strategy’s STRC preferred shares, which were offered to raise capital. These shares promise an 11.5% annual dividend, distributed in monthly installments. He suggested that the company could support these payouts by realizing gains from selling its oldest and lowest-cost Bitcoin holdings.
According to the same line of reasoning, funds raised from new STRC issuances could be re-invested into purchasing more Bitcoin. As long as buying activity outpaces sales, the company would remain a net Bitcoin buyer.
Mini glossary: Preferred shares are securities granting different rights than common stock. They often provide fixed or prioritized dividends, but may limit voting rights.
No consensus in the market
Not everyone involved in the debate is of the same view. Some market commentators argue that if a bear market drags on, Strategy’s interest expenses could rise, potentially prompting larger sales of Bitcoin regardless of management’s intentions.
According to CoinDesk, Bitcoin was trading near $63,400 on Monday. The asset has lost roughly 10% of its value over the past week. This downturn comes right after Strategy reported its first Bitcoin sale since 2022.
