"Never Sell"...After a 50% Drop in 20 Months, Michael Saylor Signals Another Bitcoin Purchase

MicroStrategy Officially Mentions Bitcoin Sales for the First Time

Practical Shift Away from "Hold at All Costs" Principle

Financial Concerns Rise Amid Continued Willingness to Buy More

MicroStrategy, the world's largest publicly traded holder of Bitcoin, has revised its strategy by leaving open the possibilities of both “further purchases” and “potential sales.” As the company breaks from its long-held “Bitcoin-only buying” approach, concerns are mounting in the market over its financial stability and funding model.

Bitcoin stock photo. Photo by AP Yonhap News

"The Orange Dot Has Appeared"...A Signal for Additional Purchases

On June 28 (local time), Michael Saylor, Chairman of MicroStrategy, posted the so-called “Strategy Tracker” showing the company’s Bitcoin holdings on X (formerly Twitter), commenting, “We're gonna need more charts.”

The market is interpreting this as a de facto signal for further Bitcoin purchases. Chairman Saylor has a track record of publishing his “orange dot chart,” which marks Bitcoin prices and purchase dates, before actually following through with additional acquisitions.

Recently, MicroStrategy invested approximately $35 million to acquire an additional 520 Bitcoins. The company now holds 847,363 BTC, with an average acquisition cost of about $67,000 per Bitcoin. Despite price corrections, the company appears to be maintaining its “aggressive accumulation strategy.”

"Now We're Selling"...First Official Mention of Sale Strategy

However, the company’s official strategy is pointing in a different direction. MicroStrategy has introduced a "digital credit capital framework" and, for the first time, opened up the possibility of selling as much as $1.25 billion worth of Bitcoin.

The strategy now aims to utilize Bitcoin not simply as a held asset, but as a source for dividends and interest payments. This is interpreted as a practical retreat from Chairman Saylor’s long-standing principle that “Bitcoin will never be sold.”

Michael Saylor, Chairman of MicroStrategy. Photo by AFP News Agency

The company has stated its intention to maintain at least 12 months of dollar reserves and, if necessary, secure dividend resources by liquidating Bitcoin. In fact, MicroStrategy emphasizes that, by combining its approximately $2.5 billion in cash-equivalent assets with additional selling capacity, it has secured the ability to pay dividends for more than two years.

'Flywheel' Disrupted...Funding Model in Jeopardy

The background for these changes lies in the limitations of the company's previous growth strategy. MicroStrategy had built a "flywheel" (self-reinforcing) structure by issuing stock and preferred shares to raise capital to buy Bitcoin, thereby boosting its share price.

However, a sharp decline in the share price has now destabilized this structure. In fact, MicroStrategy’s stock has dropped significantly from its peak, and the mNAV indicator—which divides the company’s market value by the value of its Bitcoin holdings—has recently fallen below 1. This means the market is starting to value the entire company below its assets.

Moreover, the price of its preferred shares, which have the characteristics of perpetual bonds, has tumbled, rapidly increasing the company’s dividend burden. The double-digit dividend rate and the resulting rise in funding costs have emerged as additional pressures.

Market watchers say this strategic shift marks a symbolic turning point for MicroStrategy’s approach to Bitcoin acquisition.

This content was produced with the assistance of AI translation services.