MicroStrategy CEO Phong Le has clarified that the company will only consider selling its Bitcoin (BTC) holdings under specific conditions, marking a notable shift in the firm’s strategy. This announcement follows remarks from Executive Chairman Michael Saylor, who suggested that the company might sell BTC to manage dividend obligations, a comment that caused a 4% dip in MicroStrategy (MSTR) shares and instigated market jitters.
Le outlined the first condition for selling Bitcoin, linking it to the company’s issuance of Series A Perpetual Stretch Preferred Stock, also known as Stretch (STRC), which carries an 11.5% dividend. According to Le, the introduction of this financial instrument has provided the company with strategic flexibility. In a CNBC interview, he stated, “We have raised $8.5 billion in 10 months, and with that, we look at optionality… and we say now let’s look at Bitcoin and see if it can provide us value from time to time to sell it.” This indicates a new approach where Bitcoin sales could be evaluated against issuing equity for dividends, but only if such actions would benefit shareholders.
Le emphasized that any potential Bitcoin sale would be carefully assessed to ensure it is “accretive” to the value of Bitcoin per share. He outlined specific scenarios where selling BTC would be considered beneficial: when the company’s stock price trades below its book value, or when the market-adjusted net asset value (mNAV) falls below 1.22.
The second condition for potential sales revolves around tax management, with the firm prepared to offload Bitcoin as a means to realize deferred gains or offset tax losses. In addition to these points, Le defended MicroStrategy’s financial standing, highlighting that the firm’s leverage remains within manageable limits, typically rated as investment-grade by customary benchmarks.
Le remarked, “Right now, our leverage is right around 10-15%, amplification is about 35%. We manage our leverage and amplification level very thoughtfully.” This perspective marks a departure from Saylor’s previous “never sell” ethos, which was overtly stated in prior communications. The reevaluation of the company’s strategy was initially foreshadowed during MicroStrategy’s Q1 2026 earnings call when they disclosed a staggering net loss of $12.54 billion.
Despite these significant shifts in policy, Le sought to downplay any potential market impact from possible divestments. He pointed out that MicroStrategy’s annual dividend obligations of approximately $1.5 billion pale in comparison to Bitcoin’s global trading volume, which exceeds $60 billion daily. “If our entire annual dividend is $1.5 billion… we are talking about percentage points or basis points of Bitcoin liquidity,” he explained.
Le further noted that despite the company holding nearly 4% of the total circulating Bitcoin supply, it does not believe its trading activities significantly influence the market. He stated, “For the last couple of weeks, we didn’t buy any Bitcoin and Bitcoin price still went up. Liquidity isn’t an issue for us.”
As MicroStrategy navigates these new strategies and market conditions, its future interactions with Bitcoin could signal broader implications within the cryptocurrency space, especially for corporate investors.
