For the past year, Strategy (MSTR) Executive Chairman Michael Saylor has established a weekly tradition of posting an eye-catching chart featuring orange dots every Sunday on X. This visual has often been interpreted as a precursor to anticipated Monday announcements regarding additional purchases of Bitcoin. However, this week’s post diverged slightly from the norm; Saylor included the same chart but added a provocative note suggesting, “what if we start adding green dots.”
This subtle shift has sparked a flurry of speculation among Bitcoin enthusiasts and analysts. The introduction of green dots has led some to theorize about potential stock buybacks or adjustments in the company’s balance sheet. Others are pondering whether this could signify an impending sale of Bitcoin, a notion that runs counter to Saylor’s famous stance emphasizing that “You do not sell your Bitcoin.”
Adding to the intrigue, Strategy CEO Phong Le recently spoke on a podcast, stating that the company faces no immediate refinancing risks. However, he cautioned that if Strategy’s multiple to net asset value (mNAV) were to dip below 1, the company might need to consider selling Bitcoin to fund dividends associated with its perpetual preferred equity. Le highlighted that the company could strategically sell Bitcoin purchased at a higher cost basis to offset capital gains, thereby increasing Bitcoin per share.
Such a move would be significant, given Saylor’s longstanding belief against selling Bitcoin. Strategy is currently the largest publicly traded corporate holder of Bitcoin, with nearly 650,000 BTC in its treasury. Yet, the company’s stock has experienced a drastic downturn, plummeting by 41% year-to-date and down approximately 70% from its all-time high just over a year ago.
This decline has hampered Strategy’s capability to raise funds through the sale of common stock for further Bitcoin purchases. In response, the company has increasingly turned to the issuance of preferred shares to finance its Bitcoin acquisitions. However, critics remain skeptical about Strategy’s ability to sustain preferred dividends and question whether it will need to sell a portion of its Bitcoin holdings, which could dilute the interests of common stockholders.
