Could Strategy be compelled to sell its $50 billion Bitcoin? The firm outlines its plan.
Strategy, founded by Michael Saylor, disclosed a $54.59 billion Bitcoin portfolio and sparked debate over whether it could ever be forced to liquidate. The release aims to show the firm’s long‑term sustainability despite market volatility. It also invites scrutiny of its historically aggressive accumulation tactics. The firm announced that, even if Bitcoin stays below $85,000, its holdings can fund dividend payments for 71 years. A modest 1.41 % annual price increase would fully offset dividend obligations without extra cash. This claim underscores their confidence in dividend security independent of strong price growth. Strategy reported $8.214 billion in debt, primarily from Bitcoin‑linked preferred instruments totaling $7.779 billion, with a combined notional value of $15.993 billion. Instrument durations range from under 2 to nearly 10 years, and BTC risk sits in the low single digits. Their model assumes a $87,300 Bitcoin price, 45 % volatility, and a 30 % expected annual return, suggesting ample flexibility even during sideways markets. During the 2022 crypto winter, Strategy increased its Bitcoin position when prices fell to $16,000, drawing fire for “averaging up.” SwanDesk CEO Jacob King highlighted a 22 % five‑year return versus Bitcoin’s roughly 1,000 % rise, calling the performance “horrible.” He also referenced Saylor’s near‑total loss in the dot‑com era, questioning his investment acumen.
