Strategy Signals a Shift Away From Its 'Never Sell' Bitcoin Stance
Strategy is softening its long-held "never sell" approach to Bitcoin and says it will actively manage its balance sheet with the goal of maximizing "bitcoin per share," according to a CoinDesk report.
The change marks a departure from the policy long championed by chairman and founder Michael Saylor, even as the company posted a first-quarter net loss of $12.5 billion after Bitcoin's price fell sharply at the start of the year.
President and CEO Phong Le said on Tuesday evening's earnings call that if selling Bitcoin can raise the bitcoin-per-share value, the company would consider it in the future, including selling Bitcoin to obtain U.S. dollars or to retire debt. He later added that the company will sell Bitcoin when it is in its best interest and will not simply commit to "never selling."
Le said the company intends to remain a net accumulator of Bitcoin, aiming to increase total holdings and, more importantly, increase Bitcoin holdings per share to support MSTR's long-term growth.
The company said it currently maintains $2.25 billion in U.S. dollar reserves to meet obligations such as preferred dividends and interest on outstanding debt. It has been financing Bitcoin purchases through issuing new shares and bonds. In December, the Strategy department established a company in the United States.
Shares fell 3% in after-hours trading.
Strategy uses "bitcoin per share" as an informal measure of how much Bitcoin is effectively associated with each share. The figure can change depending on additional Bitcoin purchases, new share issuance, Bitcoin sales to repay debt, or stock buybacks.
On the call, Saylor likened Strategy to a real estate development firm, arguing that buying an asset cheaply, selling it at a higher price, and recycling proceeds into further purchases—or selling assets to service the debt used to acquire more—does not undermine the business model. "We're like a Bitcoin development company," he said.
As of the end of the first quarter, Strategy held 818,334 bitcoins valued at $61.81 billion, with an average purchase price of about $75,500 per bitcoin. The company said this amounts to roughly 4% of total Bitcoin supply. So far this year, it has bought about 63,000 bitcoins.
Strategy also said its bitcoin yield has been about 9% year to date. The metric tracks growth in Bitcoin per share, measuring how efficiently the company converts capital into Bitcoin exposure for shareholders.
