$BTC
CEO of Strategy: We will not sell Bitcoin unless the company's stock falls below net asset value
Fong Li, the CEO of Strategy, stated that the company will not resort to selling Bitcoin unless its stock price drops below net asset value and it loses the ability to secure new funding.
He explained, in the What Bitcoin Did program, that this option is a necessary step to protect the Bitcoin return per share, not a change in the company's policy.
The company relies on raising capital when the stock trades at a premium over net asset value, then using it to increase its Bitcoin holdings. But when this premium disappears, selling part of the holdings may become necessary to meet obligations instead of issuing new shares that may lead to further dilution for shareholders.
Strategy faces annual obligations ranging from $750 to $800 million due to new issuances of preferred stock. Li confirms that the company plans to cover these payments through the financing it gathers during periods when the stock trades at high levels.
Li defended his long-term vision for Bitcoin as a rare and non-sovereign asset with global appeal, noting that demand for it extends across multiple countries.
Source: Cointelegraph
