CEO’s Perspective on Bitcoin Sales
The CEO of the company recently shared in an interview that he would only think about selling Bitcoin if its stock price dipped below its net asset value and they were unable to raise new capital.
On his show “What Bitcoin Did,” Lee mentioned that if a strategy’s multiple to net asset value (mNAV) falls below 1 and other funding sources are no longer viable, it might be “mathematically” reasonable to part with Bitcoin to safeguard what he referred to as “Bitcoin yield per share.” However, he was careful to clarify that this isn’t a change in their overall policy—more of a last resort. He expressed a reluctance to be the company that sells Bitcoin, insisting that financial discipline should outweigh emotional reactions if the market turns unfavorable.
The strategy relies on raising capital when the company’s shares trade at a premium to NAV. This capital is typically used to acquire more Bitcoin and boost holdings per share. According to Lee, if that premium disappears, it might be acceptable for shareholders to sell some of their holdings to meet obligations if issuing new shares would lead to greater dilution.
The warning about potential sales surfaced amid investor scrutiny of the company’s expansion into fixed payments linked to preferred shares introduced earlier this year. Lee estimates the annual debt could reach around $750 million to $800 million as recent issues mature. His strategy is to fund these payments initially through equity raised at a premium to mNAV.
“The more you distribute dividends every quarter, the more the market acknowledges that you’re committed to dividend payouts—even in tough times—and this can positively affect the stock price,” he explained.
Moving beyond financial mechanics, Lee defended Bitcoin’s long-standing reputation as a unique, non-sovereign asset with global appeal. “It’s limited in supply and non-sovereign… People from places like Australia, the U.S., Ukraine, Turkey, Argentina, Vietnam, South Korea—everyone has a fondness for Bitcoin,” he noted.
The company also recently launched a “BTC Credit” dashboard to reassure investors following the recent downturn in Bitcoin’s value. As the largest corporate holder of BTC, the company claims it can sustain its dividend payouts for years, even if Bitcoin prices remain stagnant.
Lee is confident that their debt is well managed even if Bitcoin’s price were to drop to its average purchase price of about $74,000, stating that a price of $25,000 is still manageable.
