The strategy firm has previously stated that it intends to hold Bitcoin (BTC) reserves for the long term. However, CEO Von Leh explained in an interview on November 29 that there are certain conditions before the company would consider selling some of these funds.
As he pointed out, this only occurs “if MNAV (adjusted net value per share) falls below 1.” The company is running out of financing options..
This threshold represents a scenario where maintaining immediate financial health is prioritized over a BTC accumulation strategy.
Von Leh emphasized that there are currently no plans to conduct a Bitcoin sale, but acknowledged that certain sales may be conducted under the following circumstances: You can cover certain obligations or take advantage of tax benefits.
Despite executives’ explanations, the strategy’s MNAV metric had already fallen below 1 in mid-November, and as CriptoNoticias explained, this situation is At that time, it did not lead to sales.. However, the strategy continued to buy more BTC.
Selling Bitcoin is a “last resort”: CEO’s words Strategy
He detailed how the company is evaluating the possibility of a partial sale of its positions.
You can sell your Bitcoin, and you will if you need to fund a dividend payment of less than 1x. That’s our main KPI. Under 1x MNAV, it would be more efficient for BTC yield to sell Bitcoin to pay dividends, in which case they would do so.
CEO Von Leh, Strategy.
When talking about dividend payments, he explained that from a mathematical perspective, there is a point at which selling Bitcoin becomes “out of business.” That’s when 1x MNAV (1:1 relationship between Bitcoin’s book value and the stock’s market price). break.
In other words, if the market starts valuing the stock below BTC, Strategy will enter an area where it can maintain its dividend. It will be even more difficult if you don’t sell your Bitcoin.
In that context, he said the company is prioritizing “sustained performance in BTC,” or how much Bitcoin is worth in each stock. This is your main performance indicator (KPI, English).
The central idea is simple. If MNAV is healthy, the company will avoid selling BTC and look for other ways to raise funds. But when it falls below a critical level, the situation changes.
MNAV works like a thermometer. If the MNAV is greater than 1, the company is creating value for its Bitcoin holdings. If it falls below, The market squeezes stocks, making it difficult to obtain capital without tapping into reserves..
From there, Le delved into marginal scenarios.
If your MNAV drops below 1 and you have no other way to access your funds, sell your Bitcoin. But that would almost be a last resort. That would be a last resort.
CEO Von Leh, Strategy.
Finally, the executive explained that the sale of BTC faces two aspects. One is the mathematical aspect, where it becomes a rational option when the situation forces it, and the other is the narrative aspect, as follows. May affect the image of the strategy As a Bitcoin accumulator.
He added that there are also useful technical sales in typical scenarios such as: Part of BTC purchased at high price To create a tax loss.
He also recalled an operation in 2022 in which the company bought back Bitcoin-backed loans at a discount as an example of how the company flexibly adjusts its financial structure depending on market conditions.
