Strategy Abandons its 'Never Sell Bitcoin' Position

Strategy's Bitcoin strategy is transitioning from a "never sell" approach to a more proactive balance sheet management. The company stated during their first quarter earnings call that selling Bitcoin for dollars, debt repayment, or paying dividends would be considered as long as it helps to increase the value of Bitcoin per share.

This changes the market's core framework for understanding MSTR. In the past, Strategy's appeal came mainly from its continuous accumulation of Bitcoin and the promise of "never selling coins"; now, Bitcoin could also become a tool for the company to manage debt, dividends, and shareholder returns.

Behind this shift is the growing tangible financial pressure. Strategy posted a net loss of $12.5 billion in the first quarter, primarily due to the decline in Bitcoin prices; the company also established a $2.25 billion dollar reserve to cover preferred stock dividends and debt interest obligations. As of the end of the first quarter, the company held 818,334 Bitcoins, with a total cost of approximately $61.81 billion, and an average holding cost of around $75,500.

CEO Phong Le stated during the call that the company will no longer sit there saying "never sell Bitcoin." He emphasized that Strategy still aspires to be a net accumulator of Bitcoin, but the management places more importance on Bitcoin per share, as this metric more directly corresponds to MSTR shareholders' exposure to Bitcoin.

Michael Saylor defended the new strategy by likening it to real estate developers. According to him, buying land at a low price and selling it at a high price, then using the proceeds to buy more land or pay debt interest, does not mean that the business model has failed; the key for Strategy is whether selling part of its Bitcoin holdings can result in a higher Bitcoin value per share.

The market's disagreement also concentrates here. Supporters would argue that active management helps reduce financing pressure and decrease dilution from merely increasing issuance; opponents, on the other hand, fear that once the "never sell" promise is broken, MSTR's valuation premium relative to Bitcoin itself may be subject to repricing.