Is Strategy’s Bitcoin Plan Actually Under Pressure? One CEO Says No

TLDR

• Strategy bought 1,550 bitcoin for $101.3 million after a rare sale triggered a market selloff
• The earlier sale of just 32 bitcoin raised $2.5 million to pay dividends, its first such sale since 2022
• BTC.TOP CEO Jiang Zhuoer says Strategy could survive bitcoin falling to $30,000 without major selling
• Strategy holds 845,256 bitcoin in total, worth roughly $63.9 billion
• Bitcoin dropped below $60,000 for the first time since October 2024 before recovering to around $63,400

Strategy made headlines twice in one week — first for selling bitcoin, then for buying more. The moves rattled markets and sparked debate about whether the company’s bitcoin strategy is under pressure.

Strategy Inc, MSTR

The company sold just 32 bitcoin, raising around $2.5 million to cover dividend payments on its preferred shares. It was only the second time Strategy has ever sold bitcoin, and the first since December 2022. That was enough to push bitcoin below $60,000 for the first time since October 2024.

Then, days later, Strategy filed with the Securities and Exchange Commission disclosing a purchase of 1,550 bitcoin for $101.3 million. The buy was funded through $181 million in stock sales. The average price paid was $65,332 per coin.

What Triggered the Panic

The small sale hit markets hard because Strategy, led by Michael Saylor, has built its reputation on never selling bitcoin. Any deviation from that image draws attention.

Online speculation made things worse. An on-chain analyst flagged that around 45,000 bitcoin left a Fidelity custody wallet between May 28 and June 1. Some suggested Strategy had quietly sold a large amount at around $66,000 per coin.

But that wallet also holds assets for Fidelity’s bitcoin and ether ETFs. Linking the outflow directly to Strategy was an inference, not a confirmed fact.

One Mining CEO’s Take

Jiang Zhuoer, CEO of BTC.TOP, one of China’s largest bitcoin mining pools, pushed back on the panic. Writing on X in Mandarin, he said Strategy’s debt is only about 5% of its total assets.

Even if bitcoin dropped to $30,000, that debt ratio would only rise to around 10%, he said. That leaves Strategy with little reason to sell large amounts.

Jiang also explained the logic behind Strategy’s preferred shares, called STRC. These pay an 11.5% annual dividend. Strategy funds those payments by selling older, lower-cost bitcoin, booking an accounting profit in the process.

New STRC share sales raise fresh cash to buy more bitcoin. As long as purchases outpace sales, Strategy remains a net buyer overall.

Not everyone agreed. Some observers said a prolonged bear market could grow Strategy’s interest payments and force larger sales, regardless of what management plans.

Where Things Stand

Strategy’s stock rose 3.8% on Monday after the purchase was disclosed. But shares are still down more than 33% over the past month.

Bitcoin traded near $63,400 on Monday, still down about 10% for the week. Strategy now holds 845,256 bitcoin in total, with a market value of around $63.9 billion, or roughly $75,680 per coin.

Michael Saylor, who founded the company in 1989, has an estimated net worth of $3.8 billion.

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