Strategy CEO Phong Le said the company’s sale of 32 bitcoins was a test of its operation and not a sign that the company needed cash to pay dividends.
summary
- Strategy’s 32-bitcoin sale tested internal systems, not the need to fund the dividend, Phuong Le said.
- The strategy still bought 1,550 BTC after that, bringing the total holdings to 845,256 BTC by June 7.
- Saylor’s CEBE BPS measure shifts investors’ focus toward debt, preferred equity, and common shareholder risk.
On June 13th interviewLu said the sell-off helped “fortify the market” and gave the strategy a way to verify how the internal Bitcoin sell-off was working.
Company Sold 32 Bitcoin between May 26 and May 31 for approximately $2.5 million, according to its filing with the Securities and Exchange Commission. The average selling price was $77,135 per bitcoin. Proceeds are expected to fund preferred stock dividends, the filing said, prompting some investors to question whether the strategy might need to sell more bitcoin later.
The strategy says that selling is not related to earnings pressure
Law retracted that reading. He said the strategy did not sell Bitcoin because it needed to meet cash dividend obligations. He said the company still has other financing channels, including equity instruments and preferred shares, to support its capital structure.
He also said the sale created tax losses that may offset related taxes in future periods. The goal, Lu said, was to test the process, minimize market shock around the idea of a sale, and keep the company ready if a small sale later benefits common shareholders.
The CEO said the strategy will use mathematics rather than ideology when choosing between selling bitcoin and issuing stock. If selling Bitcoin improves the price of Bitcoin per share for common shareholders, the company may choose this path. If the stock version works better, he can use that route instead.
Forced selling remains an extreme case
Le also addressed the opportunity for forced selling of Bitcoin. A more realistic case would include about $3.5 billion in preferred obligations due in 2028, he said. If bitcoin declines sharply and Strategy’s stock price remains weak, the company could sell bitcoin to meet those obligations.
Lu described this result as an “extreme case.” The strategy could also refinance those liabilities or convert them into equity, he said. This means that selling Bitcoin is not the only course available if market conditions worsen.
Ditto I mentioned By crypto.news, Strategy bought 1,550 BTC for about $101.3 million from June 1 to June 7 after selling 32 BTC. The purchase brought her total holdings to 845,256 BTC. The strategy also raised its US dollar reserves to $1 billion.
The Saylor Scale brings risk into focus
The discussion comes as Michael Saylor attempts to clarify how investors should measure Bitcoin exposure to Strategy. Earlier today, crypto.news reported that Saylor He said Bitcoin Per Share tracks the growth of common stocks, while Bitcoin Common Equity BPS, or CEBE BPS, tracks Bitcoin’s exposure after debt claims and preferred stock.
CEBE BPS is a conservative risk measure, Saylor said. This is important because Strategy’s Bitcoin model now includes costs of debt, preferred stock, and dividends. The gap between Bitcoin per share and CEBE BPS could widen as senior claims grow.
