• Strategy may sell BTC only if mNAV drops below one.
• Capital access will determine whether limited sales occur.
• Rising dividend obligations pressure funding needs.
• The new BTC Credit dashboard aims to calm investors.

Strategy has clarified the circumstances under which it would sell its Bitcoin reserves. The firm maintains a firm commitment to long-term holding, yet its leadership acknowledges that market stress could force a different path. The threshold is clear. A sale becomes possible only if the firm’s multiple to net asset value slips below one, and capital markets stop providing funding.

These factors, according to Strategy’s leadership, create a scenario where reducing BTC exposure becomes a mathematical requirement rather than a strategic shift. CEO Phong Le emphasized that the company does not plan to sell under current conditions. He explained that selling would only defend shareholder value when premiums disappear, and financing options are no longer available.

The model depends heavily on raising capital while the stock trades at a premium to NAV, then converting that capital into additional Bitcoin. This process increases BTC held per share and reinforces its long-term thesis. Once the premium vanishes, limited technical sales may become the more responsible approach compared with issuing new equity at a level that dilutes shareholders.

Also Read: BNB Chain Burns $1.2 Billion Tokens, Price Eyes $1,250

Dividend Obligations Pressure BTC Balance Sheet

The pressure of these sales is escalating as Strategy is also experiencing a growing dividend burden due to preferred stocks issued this year. These stocks generate a fixed annual expense estimated to be between $750 million and $800 million. The plan of the management is to satisfy these payments by increasing equity, considering that the stock is trading above its market net asset value, or mNAV.

He explains a cycle of rewards for discipline. Each successful dividend cycle is a step towards a firm’s ability to pay obligations even when the market is tough. Eventually, this leads to a situation where the share price rises to levels that favor fundraising. The strategy sees this cycle as a way of maintaining stability among its members, thus preventing the sale of Bitcoins.

New Dashboard Reassures Investors Amid Volatility

Market volatility is also affecting digital asset treasury managers. Strategy responded to this by launching its new BTC Credit tool last week. This tool is intended to simplify market uncertainty that was experienced after the latest fall of Bitcoin and the sell-off of its corresponding stocks.

The company, known to be the largest corporate holder of Bitcoin, aims to demonstrate through this dashboard that it is adequately covered for dividends and for day-to-day operations. It thus aligns well with its story of strength, sound balance sheet, and long-term faith in Bitcoin as a scarce asset to the world.

Also Read: Ondo Faces Heavy Sell-Off but $0.96 Target Remains in Sight