Samson Mow "Strategy's Bitcoin Sale, a Strategic Choice"

▲ Michael Saylor, Bitcoin (BTC), Strategy/ChatGPT generated image

Market attention turned to Michael Saylor after Strategy announced that it might sell some of its held Bitcoin (BTC). Strategy, which had strongly maintained a stance of not selling Bitcoin, mentioned the possibility of selling Bitcoin to secure funds for dividends, sparking debate over a potential shift in its Bitcoin financial strategy.

According to Cointelegraph, a cryptocurrency media outlet, on May 7 (local time), Bitcoin advocate Samson Mow evaluated Saylor's statement as a decision that grants Strategy more options. Mow stated, "Never selling limits your options. The open market is war. In war, you need every tool available."

Mow continued, "The more tools Strategy has, the fewer angles opponents can exploit. Companies with real options are difficult to attack. They can sell, hedge, issue, or buy. A company that publicly pledges to do only one thing is like handing a map to short sellers and arbitrageurs." He argued that Saylor's statement is not a retreat from the existing philosophy but a strategy to broaden the means of market response.

Strategy is the largest corporate holder of Bitcoin among listed companies, holding 818,334 BTC as of the time of writing. Some market analysts believe that if Strategy actually proceeds with a Bitcoin sale, it could put pressure on the spot Bitcoin price. Strategy's average purchase price for its Bitcoin holdings was presented as $75,537 per coin.

Saylor said during the first-quarter earnings announcement, "We will probably sell some Bitcoin to fund dividends. This is to give immunity to the market and send a message that we actually did it." He explained that if the price of Bitcoin rises by more than 2.3% annually, Strategy could permanently pay dividends solely with Bitcoin, without selling a single share of common stock.

Saylor stated, "We can stop selling MSTR common stock right now," adding, "we can fund dividends by selling Bitcoin." Cointelegraph reported that Strategy has funded its Bitcoin purchases by mixing corporate bonds and equity-like products, a method that has raised concerns among some investors about shareholder value dilution and leveraged buying.

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