US-based enterprise software firm Strategy stands out as one of the largest corporate holders in the Bitcoin market, controlling a staggering 818,334 BTC. While Chairman Michael Saylor is well known for his “never sell Bitcoin” approach, his recent statements have raised fresh questions in the market about the company’s Bitcoin strategy.
Debate over sales and Saylor’s statements
Following the company’s first-quarter financial results, Saylor addressed analysts and suggested that selling a small portion of the company’s Bitcoin holdings could be considered. He emphasized that this potential sale would be intended to support dividend payments associated with the company’s STRC preferred stock, which carries an annual yield of 11.5 percent. Importantly, Saylor stressed that the company’s core strategy remains unchanged; any possible sales would not be aimed at generating net profit, but rather at sourcing funds to acquire even more Bitcoin.
“If we were ever to sell one Bitcoin, we’d immediately look to buy 10 or 20 more,” Saylor explained, emphasizing that this would be a temporary and limited approach aimed at building larger positions with minimal transactions.
Addressing these possibilities, Saylor made it clear that the company’s stance does not signal an end to its Bitcoin policy. Instead, he likened their capital management to the kind of growth investments typically made by technology firms.
STRC dividends and the financial equation
The company’s STRC-labeled preferred stock currently offers an attractive annual dividend yield of approximately 11.5 percent, and the STRC portfolio is valued at around $8.5 billion. To meet these significant dividend obligations, occasional Bitcoin sales may be necessary. CEO Phong Le clarified that such sales would only be pursued if they proved to be more advantageous to shareholders than issuing new stock, adding that the decision would rely entirely on thorough financial analysis.
In addition to its Bitcoin reserves, Strategy maintains cash reserves of $2.25 billion to guard against potential liquidity needs. The board is also considering a proposal that would shift STRC dividend payments to a semi-monthly schedule.
Market reaction and criticism
The idea that Strategy might occasionally sell Bitcoin to fund dividend payments has unsettled some investors who favor a long-term accumulation strategy. However, company leadership maintains that these limited sales will not alter the company’s core objective to increase its per-share Bitcoin holdings over time.
Michael Saylor’s views have also drawn criticism from economist Peter Schiff, a frequent skeptic of Bitcoin. Schiff argued there may be tension between maintaining high dividend payments and preserving Bitcoin reserves under the STRC capital structure. Saylor countered that Schiff does not recognize Bitcoin as a legitimate digital asset, and therefore cannot fully appreciate its value.
Strategy’s executive team describes its business model as treating Bitcoin as digital capital and STRC as a digital credit product. The company’s own MSTR stock tracks closely with the underlying performance of its crypto assets.
Analysts at JP Morgan predict that Strategy’s Bitcoin acquisitions could reach as high as $30 billion. The company’s average purchase price for its Bitcoin stands at $75,537 per BTC, and as of recent reports, Strategy holds an unrealized profit margin of about 7.02 percent. The current market value of the company’s Bitcoin reserves is estimated at $66.15 billion.
