In a recent earnings call, Strategy’s executive chairman, Michael Saylor, brought up the potential for selling Bitcoin, a departure from the company’s historically steadfast stance of retaining its holdings. During the conversation, Saylor emphasized that with approximately $65 billion worth of Bitcoin in its portfolio, it might be necessary to communicate to the market that the company is open to selling if necessary to maintain the asset’s long-term interests.
Saylor expressed concern that if the market perceived that Strategy would never divest from its Bitcoin holdings, credit rating agencies might classify it as a non-asset. “There is $20 to $100 billion of liquidity in the Bitcoin market that is not correlated to our equity or to our credit,” he indicated, stressing the importance of signaling readiness to leverage that liquidity if it benefits the company’s financial health. This statement comes amidst rising speculation within the cryptocurrency community following Saylor’s comments during the first quarter earnings call, where he suggested that selling Bitcoin could serve to stabilize the market and reinforce confidence in the company.
The podcast episode featuring Saylor aired on The Wolf Of All Streets, hosted by Scott Melker, where the implications of selling Bitcoin were further explored. Discussions on social media platforms have ignited with reactions from various members of the Bitcoin community. For instance, Simon Dixon, CEO of BnkToTheFuture, remarked on May 7 that there might be a need for Strategy to sell some Bitcoin to navigate financial complexities tied to their collateralized debt obligations and dividend strategies.
Since it began amassing Bitcoin in August 2020 as a primary treasury asset, Strategy has established a significant position in the market, accumulating a total of 818,869 BTC at an average purchase price of $75,540 per coin. Recently, the company added to its holdings, acquiring 535 Bitcoins for $43 million between May 4 and May 10 at an average price of $80,340 per BTC.
Despite Saylor’s call to consider selling portions of their Bitcoin, he remains a vocal advocate for holding onto the cryptocurrency. Regularly sharing advice on platforms such as X, he notably stated on May 6, “Buy more bitcoin than you sell,” which serves to reinforce his commitment to the asset, even as he navigates the complexities of managing a large Bitcoin treasury.
