Michael Saylor Addresses Concerns Over Potential Bitcoin Sales
- Strategy (MSTR) could sell bitcoin to fund dividends, but Saylor claims it would be minimal, estimating only $3 million needed.
- Saylor emphasized that if they sold bitcoin for dividends, they would buy back more than they sold—specifically, buying up to 20 bitcoins for every one sold.
- The liquidity of bitcoin is estimated between $20 billion and $50 billion, making the potential sale inconsequential in the broader market.
- Saylor highlighted a tax credit option of up to $2.2 billion available to the company, with decisions made on a weekly basis regarding capital allocation.
- The company’s preferred stock, Stretch (STRC), has seen significant growth but is currently trading at a slight discount due to recent supply increases.
Michael Saylor reassured investors that any potential sales of bitcoin are not a significant concern and are part of a larger strategy involving their capital markets operations. The firm prioritizes trades that maximize bitcoin per share while managing risks associated with their balance sheet.
With estimates suggesting only $3 million may be needed from bitcoin sales for dividends, the overall impact on Strategy’s operations appears negligible amidst its ongoing financial strategies.(Source)
