Strategy CEO says 32 BTC sale was a test, not a cash need

Strategy CEO Phong Le said the company’s 32 BTC sale was a test of its process and not a sign that the firm needed cash for dividends. 

In a June 13 interview, Le said the sale helped “inoculate the market” and gave Strategy a way to check how an internal Bitcoin sale would work.

The company sold 32 Bitcoin between May 26 and May 31 for about $2.5 million, according to its SEC filing. The average sale price was $77,135 per BTC. The filing said proceeds were expected to fund preferred stock distributions, which led some investors to question whether Strategy might need to sell more Bitcoin later.

Strategy says sale not tied to dividend pressure

Le pushed back on that reading. He said Strategy did not sell Bitcoin because it needed to meet cash dividend obligations. He said the company still has other funding channels, including equity and preferred stock tools, to support its capital structure.

He also said the sale created tax losses that may offset related taxes in future periods. The point, according to Le, was to test the process, reduce market shock around the idea of selling, and keep the company ready if a small sale later benefits common shareholders.

The CEO said Strategy would use math over ideology when choosing between selling Bitcoin and issuing stock. If a Bitcoin sale improves Bitcoin per share for common holders, the company may choose that path. If share issuance works better, it can use that route instead.

Forced selling remains an edge case

Le also addressed the chance of a forced Bitcoin sale. He said the most realistic case would involve about $3.5 billion of preferred obligations due in 2028. If Bitcoin fell sharply and Strategy’s share price stayed weak, the company could sell Bitcoin to meet those obligations.

Le described that outcome as an “edge case.” He said Strategy could also refinance or convert those obligations into equity. That means a Bitcoin sale is not the only available path if market conditions worsen.

As previously reported by crypto.news, Strategy bought 1,550 BTC for about $101.3 million between June 1 and June 7 after the 32 BTC sale. The purchase lifted its total holdings to 845,256 BTC. Strategy also raised its U.S. dollar reserve to $1 billion.

Saylor metric puts risk in focus

The debate comes as Michael Saylor has tried to clarify how investors should measure Strategy’s Bitcoin exposure. Earlier today, crypto.news reported that Saylor said Bitcoin Per Share tracks common equity growth, while Common Equity Bitcoin Exposure BPS, or CEBE BPS, tracks Bitcoin exposure after debt and preferred stock claims.

Saylor said CEBE BPS is the conservative risk metric. That matters because Strategy’s Bitcoin model now includes debt, preferred stock and dividend costs. The gap between Bitcoin per share and CEBE BPS can widen when senior claims grow.