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

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

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

According to the cryptocurrency media outlet Cointelegraph on May 7 (local time), Bitcoin advocate Samson Mow evaluated Saylor's remarks as a decision that grants Strategy 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 have to exploit. A company with real options is difficult to attack. It 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 arbitragers." He argued that Saylor's remarks were not a retreat from existing philosophy but a strategy to broaden market response capabilities.

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 downward pressure on the spot Bitcoin price. Strategy's average purchase price for its Bitcoin holdings was stated as $75,537 per coin.

Saylor said during the Q1 earnings announcement, "We will likely sell some Bitcoin to fund dividends. This is to immunize the market and send a message that we actually did so." 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," and "We can fund dividends through Bitcoin sales." Cointelegraph reported that Strategy has funded its Bitcoin purchases by mixing corporate bonds and equity-based products, a method that has raised concerns among some investors about shareholder dilution and leveraged buying.

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