"For half a decade, ) - still "MicroStrategy" in every trader's muscle memory - has lived by a simple, almost religious rule: buy Strategy ( NASDAQ:MSTR Bitcoin ( CRYPTO:BTC), never sell. Executive chairman Michael Saylor turned that hard-and-fast rule into a brand - a battle cry, even - and the company's stock went up faster than the asset it was hoarding."
"Strategy's orange dots - the little markers Saylor posts on X every time he adds more Bitcoin to the pile - became a kind of crypto liturgy. There have never been any red dots. Ever. Whenever the crypto's high priest was asked by someone about what would happen during a steep collapse in price, he declared he would simply buy more Bitcoin."
"During a recent interview on the What Bitcoin Did , Strategy CEO Phong Le was pointedly asked whether the company would ever sell any Bitcoin. Despite Saylor's previous defiant declarations to the contrary, Le said crypto sales from its treasury were possible. "If the stock trades below the value of our Bitcoin," Le explained, "and we can't raise any other capital to pay the preferred dividends, then mathematically we would have to sell some Bitcoin. It would be the last resort.""
MicroStrategy maintained a strict buy-and-hold rule for roughly five years under Michael Saylor, consistently adding Bitcoin and refusing to sell. The company increased its holdings to 650,000 bitcoin, adding 10,000 in one month, while bitcoin fell about a third from a peak above $126,000. CEO Phong Le said selling from the treasury is possible if the stock trades below the value of the Bitcoin and the company cannot raise capital to pay preferred dividends, framing sales as a mathematical last resort. Preferred option payments are due Dec. 31 and MicroStrategy's mNAV trades near a 1.0 threshold.
Read at 24/7 Wall St.
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