Strategy, the largest institutional Bitcoin bull, was making headlines with its weekly purchases in the market. However, last week, Strategy founder Michael Saylor signaled a Bitcoin (BTC) sell-off for the first time.
While this situation caused surprise in the market, Strategy CEO Phong Le spoke about the BTC sell-off announcements.
Accordingly, Le, who gave the green light to BTC sales, said that BTC would only be sold for dividend and tax advantages.
Speaking recently to CNBC, Stretegy CEO Phong Le stated that the company would adopt a mathematical rather than an ideological approach, and outlined two specific scenarios in which it could sell its Bitcoin holdings.
Le stated that the first scenario would be to finance dividend payments for STRC, which has perpetual preferred shares. Le noted that Strategy could sell Bitcoin for this purpose, but only if it was deemed more beneficial than issuing new shares to increase the company’s Bitcoin per share (BPS) value.
The second scenario involves selling assets to maximize tax advantages. According to Le, a company could sell a portion of its assets to maximize tax benefits by realizing or deferring gains and losses.
This marks a departure from Strategy’s previous “never sell” stance, as the company has now indicated it is open to selling its Bitcoins if it becomes advantageous.
Le also stated on Sunday that Strategy’s success was based on “more than Bitcoin,” pointing to the increasing momentum in its software and AI business.
Following these statements, Michael Saylor also said that if the company were to sell Bitcoin, he would buy back “10 to 20” more BTC for every Bitcoin sold.
*This is not investment advice.
