US-based Strategy, known for its Bitcoin reserves, came to the fore with statements that it could sell some of the assets in its portfolio. In his interview with CNBC, Phong Le, the company’s CEO, stated that Bitcoin can be sold under certain conditions in order to meet dividend payments and tax liabilities. Le stated that these sales can only happen if the company increases the Bitcoin per share rate for shareholders.
Prominent reasons for selling
Phong Le pointed out that the company could sell Bitcoin to make payments for its corporate credit instrument called Series A Perpetual Stretch Preferred Stock (STRC), which provides an annual dividend yield of 11.5 percent. He also said some of the proceeds could be used to defer or offset tax liabilities. However, it was emphasized that the important criterion here is that the sales contribute positively to the financial structure of the company.
Strategy’s evaluation of this plan came to the fore recently after the company’s co-founder Michael Saylor stated that Bitcoin sales could be made periodically. Saylor’s statements raised concerns among Bitcoin investors about the possible effects of the company’s sales on the market price.
Statement: “The company’s balance sheet will remain strong”
At the balance sheet meeting held this week, Michael Saylor said, “We can sell Bitcoin in an amount that will cover the dividend payment in order to prepare the market and send a message that the process is transparent.” Saylor also suggested that if Bitcoin appreciates more than 2.3 percent on an annual basis, the company could sustain its dividend payments over the long term by strategically selling only Bitcoin.
“We can stop selling MSTR stock right now, covering dividends with Bitcoin sales.”
It was stated that the main goal of the company is to pay dividends without reducing the amount of Bitcoin per share. It was noted that the sales will only be made in the long-term interest of the shareholders, that is, if it creates an increase in the BTC per share rate.
Market impact and size of BTC reserves
According to current data, Strategy is the company with the largest publicly traded Bitcoin reserve, holding 818,334 Bitcoins. The total value of these assets has exceeded 66 billion dollars as of the day of the announcement. The data of the BitcoinTreasuries site confirms the company’s leadership in this regard.
The company’s executives argue that high annual dividend payments will not put serious pressure on the Bitcoin price. Phong Le stated that Bitcoin has a daily trading volume of approximately $60 billion, which will be enough to cover annual dividend payments of over $1 billion.
Phong Le shared his assessment: “Considering the daily transaction volume, our BTC sales are not expected to have a serious impact on the market.”
Industry experts state that large companies selling Bitcoin from their portfolios could potentially create short-term pressure, but the liquidity in the market can largely absorb these sales.
