MSTR CEO Warns: Bitcoin Holdings Could Be Liquidated If Stock Price Dips Below Asset Value

MicroStrategy's CEO drops a bombshell—the company's massive Bitcoin treasury isn't untouchable.

In a move that sent ripples through crypto circles, the executive revealed a contingency plan that could see Bitcoin sales triggered by one specific metric: the company's stock price falling below the value of its digital asset holdings.

The Contingency Clause

It's a stark reminder that corporate crypto strategies, however bold, still answer to traditional market forces. The statement frames Bitcoin not just as a long-term store of value, but as a strategic asset with a potential exit strategy tied directly to shareholder equity.

Walking a Tightrope

The revelation highlights the delicate balance between conviction and pragmatism. While MicroStrategy has been the poster child for corporate Bitcoin adoption, this plan acknowledges the reality of stock market pressures—a nod to the fact that even the most bullish narratives can face a margin call from Wall Street.

It's a classic finance maneuver: hedging a high-conviction bet with a clear, if unpalatable, escape route. Because in the end, even digital gold can be sold to keep the lights on and the shareholders—some of whom probably still think 'blockchain' is a new type of yoga strap—from panicking.

TLDR

• Strategy CEO Phong Le confirmed the company would sell Bitcoin only as a last resort if its stock falls below net asset value (mNAV of 1.0) and capital access disappears
• The company faces $750-$800 million in annual dividend payments on preferred shares that must be covered
• Strategy’s mNAV currently hovers around 0.96, meaning the stock trades below the value of Bitcoin it holds
• Michael Saylor’s recent tweet about adding “green dots” to his Bitcoin tracker sparked speculation about potential sales
• Strategy holds approximately 650,000 BTC and launched a new credit dashboard to reassure investors after recent market drops

Strategy CEO Phong Le broke from the company’s long-standing “never sell” policy by admitting Bitcoin sales could happen under specific conditions. Speaking on the What Bitcoin Did podcast, Le said selling would be “mathematically justified” if the company’s stock price falls below its net asset value and financing options disappear.

MicroStrategy Incorporated, MSTR

The statement marks a shift for the company formerly known as MicroStrategy. Strategy has built its business model around accumulating bitcoin and never selling. The company now holds roughly 650,000 BTC, making it the largest corporate Bitcoin holder.

Le stressed that selling WOULD only happen as a last resort. “I would not want to be the company that sells Bitcoin,” he said. But he added that financial discipline must win out when markets turn against the company.

The trigger point centers on Strategy’s multiple to net asset value, or mNAV. This ratio compares the stock price to the actual value of Bitcoin the company holds. When the mNAV stays above 1.0, Strategy can issue new shares at a premium and use that money to buy more Bitcoin.

Right now, the mNAV sits around 0.96. That means Strategy stock trades below the value of its Bitcoin holdings. If that ratio drops further and stays down, while the company loses access to capital markets, selling Bitcoin becomes the only option to meet financial obligations.

Dividend Payments Create Pressure

Strategy faces $750 million to $800 million in annual dividend payments. These payments come from preferred shares the company issued this year. Le said the company plans to cover these dividends by raising equity when shares trade at a premium to mNAV.

“The more we pay the dividends out of all of our instruments every quarter, that’s seasoning the market to realize that even in a bare market, we’re going to pay these dividends,” Le explained. He believes consistent dividend payments will help the preferred shares maintain their value.

The dividend burden creates a fixed cost that Strategy must cover regardless of Bitcoin’s price. If the company cannot raise capital through stock sales, selling Bitcoin becomes the backup plan. Le said this approach protects existing shareholders from excessive dilution.

Green Dots Spark Speculation

Michael Saylor added to the uncertainty with a tweet on November 30th. He suggested adding “green dots” to his Bitcoin purchase tracker. Saylor has historically used orange dots to mark Strategy’s Bitcoin purchases.

The crypto community interpreted green dots as a potential signal for Bitcoin sales. Some analysts see it as preparation for a major policy shift. Others think it might relate to stock buybacks rather than Bitcoin sales.

The timing of Saylor’s tweet amplified concerns. Bitcoin recently dropped below $90,000, putting pressure on Strategy’s financial metrics. The combination of falling Bitcoin prices and Le’s comments about potential sales created worry among investors.

Credit Dashboard Launched

Last week, Strategy launched a “BTC Credit” dashboard to address investor concerns. The dashboard aims to show the company can cover its obligations even if Bitcoin prices stay flat or drop further.

Strategy claims its debt remains manageable if Bitcoin falls to its average purchase price of around $74,000. The company says it could handle Bitcoin prices as low as $25,000 while still meeting its obligations.

Le defended Bitcoin as a long-term investment during his podcast appearance. “It’s non-sovereign, has a limited supply… people in Australia, the US, Ukraine, Turkey, Argentina, Vietnam and South Korea — everyone likes Bitcoin,” he said.

The company’s business model depends on maintaining access to capital markets. Strategy raises money when its stock trades at a premium, then uses that money to buy more Bitcoin. This increases the amount of Bitcoin held per share. When that premium disappears, the model breaks down.

Le said selling Bitcoin to meet dividend obligations would be acceptable to shareholders if issuing new equity would dilute existing shares even more. The decision comes down to math rather than ideology.

Strategy’s mNAV of 0.96 puts the company in a precarious position. Bitcoin prices and Strategy’s stock price both need to recover for the company to avoid potential sales.