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Key Takeaways
- BTC.TOP CEO Jiang Zhuoer says Strategy’s debt-to-asset ratio would only reach around 10% even if Bitcoin fell to $30,000, leaving little financial pressure to sell holdings.
- Jiang argues Strategy’s STRC preferred share structure allows the firm to fund dividends through limited sales of its oldest Bitcoin while remaining a net buyer overall.
- At least one observer cautioned that a prolonged bear market could increase interest obligations over time and eventually force larger sales regardless of current management intentions.
Jiang Zhuoer, chief executive of Chinese mining pool BTC.TOP, argued Sunday that Strategy is unlikely to sell significant amounts of its Bitcoin holdings even if prices fall as low as $30,000. His comments pushed back on market speculation that followed Strategy’s first reported Bitcoin sale since 2022, which prompted debate over whether the firm was beginning to sell Bitcoin to meet financial obligations.
On-Chain Speculation Prompted Debate Over Strategy’s Bitcoin Holdings
The speculation began after an on-chain analyst estimated that roughly 45,000 Bitcoin, worth approximately $3 billion, left a Fidelity custody wallet between May 28 and June 1, with the suggestion that Strategy had sold the coins gradually at an average price near $66,000. That wallet also holds assets for Fidelity’s Bitcoin and Ether exchange-traded funds, meaning the link between the outflow and Strategy is an inference rather than a confirmed sale.
Jiang, writing on Sunday, called the speculation overblown. Bitcoin was trading near $63,400 on Monday according to CoinDesk data, down nearly 10% over the past week after Strategy reported its first Bitcoin sale since 2022.
Jiang Points to Strategy’s Low Debt Ratio as Evidence Against Forced Sales
Jiang’s argument centers on Strategy’s balance sheet. He said the company’s debt currently equals approximately 5% of its assets, and would rise to only around 10% even if Bitcoin fell from roughly $62,900 to $30,000. At that leverage level, Jiang sees little reason for the company to abandon what he described as its never-sell-Bitcoin image, which he said underpins the firm’s market positioning.
He said the combination of limited debt and the design of Strategy’s preferred share structure leaves the firm with room to continue accumulating Bitcoin even through a significant price decline.
Jiang Defends STRC Preferred Share Structure as Compatible With Net Buying
Jiang also addressed Strategy’s STRC preferred shares, which carry an 11.5% annual dividend paid in monthly installments. He argued that selling Strategy’s oldest and cheapest Bitcoin allows the firm to book an accounting profit sufficient to fund those dividend payments, while proceeds from new STRC issuances are used to purchase additional Bitcoin.
As long as purchases exceed sales in volume, Strategy remains a net buyer, he said. Jiang added that STRC holders’ primary concern had been that Strategy would refuse to sell Bitcoin and default on the dividend, meaning the firm’s willingness to make limited sales actually resolves that worry rather than creating a new one.
Other Observers Warn a Prolonged Bear Market Could Still Force Larger Sales
At least one participant in the online discussion argued that an extended bear market would increase Strategy’s overall interest obligations over time, potentially forcing larger Bitcoin sales regardless of what management currently intends. The debate follows Strategy’s disclosure that it sold 32 BTC in the week ending June 1, its first reported Bitcoin sale since 2022. Strategy continues to hold 845,256 Bitcoin, making it the largest corporate holder of the asset.
