MicroStrategy Reveals It Will Sell Bitcoin Under These Conditions
MicroStrategy CEO Phong Le confirmed the Bitcoin (BTC) treasury firm will sell BTC only under specific conditions. The remarks followed Executive Chairman Michael Saylors earlier suggestion that Strategy might sell Bitcoin to cover dividends. The comment triggered a 4% drop in MSTR shares and rattled the market. Stretch (STRC) Reshapes MicroStrategys Bitcoin Playbook The first condition Stretch (STRC). The instrument carries an 11.5% dividend. Stretch shifted the calculus, according to Le. The CEO said in a CNBC interview that the product opened strategic optionality. “We have raised $8.5 billion in 10 months, and with that, we look at optionality, we look at our strategy, and we say now lets look at Bitcoin and see if it can provide us value from time to time to sell it,” Le mentioned. This lets Strategy weigh Bitcoin sales against equity issuance for dividends. He emphasized that the firm would only sell BTC to fund yield payments if the move is accretive to shareholders. “That‘s defined as accretive to Bitcoin per share, and the times it’s accretive are when the book value of our company is trading below the price, or the price is trading below the book value, or mNAV is below right now 1.22,” he said. The second condition