Strategy CEO "The possibility of selling Bitcoin is low before 2029"

Source: BlockMedia Original Title: Strategy CEO “Selling Bitcoin, the likelihood is low before 2029” Original Link: MicroStrategy( CEO) Phong Lee( stated that the sale of Bitcoin is unlikely to occur before 2029. He explained that this is thanks to the $1.44 billion reserve set aside to support dividend payments. CEO Lee further elaborated that this reserve is designed to reduce the likelihood of having to sell Bitcoin in a long-term downturn. This reserve serves to separate the company's short-term obligations from its long-term Bitcoin holdings.

Dividend Reserves and 2029 Bitcoin Sale Scenario

In an interview with Bloomberg, CEO Li stated that the current reserves could cover approximately 21 months of dividends, and the management aims for over 2 years in US dollar terms. He emphasized that Bitcoin is being held to meet the company's long-term needs.

Investors are paying attention to the company's market net asset value ) mNAV (. This is an indicator that reflects the comparison between the company's stock value and its Bitcoin holdings value. CEO Lee stated that if mNAV falls below 1x, it would not be favorable for shareholders, making it difficult to raise dividends through regular stock issuance.

To prevent this, the company has prepared dollar reserves and stated that it will not sell Bitcoin. Additionally, it mentioned that it aims to avoid issuing shares to meet dividend obligations while mNAV is below 1x.

The CEO explained potential scenarios for selling Bitcoin, stating that a continuous Bitcoin bear market lasting about three years is necessary. He added that in such a case, the condition that mNAV must continue to trade below 1x during this period should also be met. He further noted that even if such a situation occurs, the likelihood of selling Bitcoin before 2029 is low.

Bitcoin Acquisition Strategy and Preferred Stock Funding

The CEO also mentioned the company's approach to purchasing Bitcoin. He stated that instead of buying based on market timing, the company holds excess capital or raises new funds to buy Bitcoin. “We are investors in Bitcoin, not traders,” he emphasized.

He also explained that the company's capital raising plan focuses more on issuing preferred shares rather than common stock. He argued that these financial products have a more favorable structure than traditional debt or convertible bonds. MicroStrategy has issued perpetual preferred shares, and he forecasted that it may take 18 to 36 months, or even longer, for the market to understand and accept this.

Questions regarding dividends continue to arise due to the volatility of Bitcoin prices and company stocks, and CEO Lee emphasized that this month's dollar reserves provide an answer to this issue. He added that this buys time to continue paying dividends without selling Bitcoin.