The priority would be to safeguard payments to shareholders, according to Phong Le.
The manager stated that selling BTC would affect Strategy’s image as an accumulator.
The Strategy company has made it clear in the past that its policy is to hold its bitcoin (BTC) reserves for the long term. However, its CEO Phong Le explained during a Nov. 29 interview that there is a specific condition under which the company would consider selling some of those funds.
As he noted, this would only occur “if the MNAV (adjusted net value per share) falls below 1” and the firm runs out of financing options.
That threshold would mark a scenario where preserving immediate financial health would take priority over your BTC accumulation strategy.
Phong Le stressed that there is no current plan to carry out bitcoin sales, although he acknowledged that they could carry out some specific ones in situations such as cover specific obligations or take advantage of tax benefits.
Despite what was explained by the executive, the MNAV metric for Strategy already registered a drop below 1 in mid-November and, as CriptoNoticias explained, this circumstance did not lead to sales at that time. Strategy, however, continued to buy more BTC.
Selling bitcoin “would be a last resort”: the words of the CEO se Strategy
You detailed How the company evaluates a possible partial divestment of its position:
We can sell bitcoin, and would if we needed to fund dividend payments below 1x. That is our main KPI. Under 1x MNAV it is more efficient for BTC yield to sell bitcoin to pay dividends, and we would do so in that case.
Phong Le, CEO Strategy.
When talking about dividend payments, he explained that there is a point at which selling bitcoin “goes out of business” from the mathematical side: when the 1x MNAV (the one-to-one relationship between the book value of the bitcoin and the market price of the stock) breaks.
In other words: if the market begins to value the shares below the BTC they represent, Strategy enters an area where it can maintain the dividend without selling bitcoin it becomes more difficult.
In that context, he said, the company prioritizes “sustaining performance in BTC”, that is, how many bitcoin correspond to each share, which is your main performance indicator (KPI, in English).
The central idea is simple: if the MNAV is healthy, the company avoids selling BTC and looks for other ways to raise money. But if it falls below the critical level, the situation changes.
MNAV works like a thermometer: if it is above 1, the company is creating value with respect to its bitcoin holding; if it falls below, the market punishes the stock and makes it difficult to obtain capital without touching reserves.
From there, Le delved into the limit scenario:
If our MNAV falls below one and we have no other way to access capital, we would sell bitcoin. But it would almost be a last resort. It would be a last resort.
Phong Le, CEO Strategy.
Finally, the executive explained that a BTC sale faces two planes: the mathematical one, where it would be the rational option if the conditions force it, and the narrative one, where could affect Strategy’s image as a bitcoin accumulator.
He added that there are useful technical sales in normal scenarios, such as part with BTC purchased at high prices to generate tax losses.
He also recalled the operation carried out in 2022, when the firm repurchased a loan backed in bitcoin at a discount, as an example of the flexibility with which they adjust their financial structure according to the market context.