Strategy, formerly known as MicroStrategy, has become a prominent name in the cryptocurrency world due to its large Bitcoin holdings. The company's strategy of accumulating Bitcoin has drawn both praise and criticism, and recent developments have sparked discussions about the potential for future Bitcoin sales. This article breaks down Strategy's Bitcoin plan and examines the factors that could influence its future sales decisions.
Strategy's Bitcoin Accumulation Strategy
Under the leadership of Michael Saylor, Strategy has adopted a strategy of acquiring and holding Bitcoin as its primary treasury reserve asset. Since 2020, the company has amassed a significant amount of Bitcoin, currently holding approximately 650,000 BTC, representing over 3% of the total Bitcoin supply. Strategy's Bitcoin holdings are valued at approximately $55.28 billion. The company's average purchase price per Bitcoin is $74,436, with a total cost of $48.38 billion.
To finance its Bitcoin purchases, Strategy has primarily relied on raising capital through equity offerings and debt issuances. This approach has allowed the company to accumulate a substantial Bitcoin position, but it has also made Strategy's financial performance closely tied to the price of Bitcoin.
Factors Influencing Future Sales
While Strategy has maintained a long-term commitment to its Bitcoin accumulation strategy, recent statements from CEO Phong Le have raised the possibility of future Bitcoin sales under specific circumstances. Le has indicated that Strategy would only consider selling Bitcoin if two conditions are met:
- The company's share price falls below its market-value net asset value (mNAV): mNAV is a metric that compares Strategy's enterprise value to the value of its Bitcoin holdings. If the mNAV falls below 1, it indicates that the market values the company at less than the value of its Bitcoin assets.
- Access to new capital deteriorates significantly: Strategy relies on raising capital to fund its Bitcoin purchases and meet its financial obligations. If the company loses access to new capital, it may be forced to consider selling Bitcoin to cover its expenses.
Le has emphasized that selling Bitcoin would be a "last resort" option and not a change in the company's overall strategy. He has also stated that any potential sales would be limited and aimed at protecting shareholder value.
Recent Developments and Market Impact
In late November 2025, Strategy announced the creation of a $1.44 billion dividend reserve fund. This fund is intended to cover dividend and interest payments for at least 21 months, providing a buffer against market volatility. The creation of the reserve fund has been interpreted as a sign of institutional confidence and a move to align the company with traditional corporate finance structures.
However, the announcement of the reserve fund coincided with a decline in Bitcoin's price and a drop in Strategy's stock price. This led to increased scrutiny of Strategy's strategy, with some critics questioning the sustainability of its Bitcoin-centric approach.
Potential Impact of Sales
Even if Strategy were to sell a portion of its Bitcoin holdings, the impact on the overall Bitcoin market may be limited. The Bitcoin market has a daily trading volume of tens of billions of dollars, and any sale by Strategy would likely be targeted rather than a full exit.
Conclusion
Strategy's Bitcoin plan is based on accumulating and holding Bitcoin as its primary treasury reserve asset. While the company remains committed to this strategy, recent developments have raised the possibility of future Bitcoin sales under specific conditions. The factors that could trigger sales include a decline in the company's mNAV and a deterioration in its access to new capital. While any potential sales could have some impact on the Bitcoin market, the overall effect is likely to be limited. Strategy's future actions will depend on the evolving market conditions and its ability to maintain its financial stability.
