Strategy’s CEO warned on Friday that the company might sell up to $5 billion in Bitcoin, a significant increase from the previously stated $1.25 billion target. The firm, formerly MicroStrategy, has gone five consecutive weeks without buying BTC and is instead rebuilding its USD reserve. CEO Phong Le outlined three reasons for potential sales: funding a dollar reserve, covering dividend and interest payments of $1.76 billion annually, and financing up to $2 billion in stock repurchases. The announcement drew sharp criticism from analyst Crypto Kaleo, who said Strategy is no longer a BTC company but a credit company with an atrocious rating.
Strategy’s CEO warned on Friday that the company might sell up to $5 billion in Bitcoin, a figure significantly higher than the previously claimed $1.25 billion. The firm, now called Strategy, has gone five consecutive weeks without purchasing BTC, marking its longest acquisition pause in years.
Instead of deploying capital into Bitcoin, the company has steadily increased its cash reserve through recent fundraising activities. In the most recent official change, CEO Phong Le took to X to announce the company’s new primary corporate objective: “Our corporate objective is for STRC to trade at $99-$100 over time.”
During the earnings call, Le was more specific: “Our intent is to sell bitcoin for three reasons when we think it’s appropriate for the company. One, fund the U.S. dollar reserve up to $1.25 billion. Additional reasons include funding dividend and interest payments of $1.76 billion a year and funding up to $2 billion in common and preferred stock repurchases.”
The comments drew immediate reactions from industry commentators. Constant critic Peter Schiff was quick to determine: “In other words, common shareholders are screwed.”
Analyst Crypto Kaleo asked whether the CEO remembers when the primary objective was to increase Bitcoin per share, adding: “It was only two months ago, so shouldn’t be difficult!” In another post, he argued that Strategy is no longer a BTC company but operates as a credit company with an “atrocious” credit rating.
The Saylor-co-founded company launched STRC preferred stock to finance long-term BTC accumulation. It needs to trade at its par price of $100 to function properly but has been below that for months, dropping below $75 before recovering to almost $90 after the company shifted focus to rebuilding its USD reserve. Some investors view Le’s comments as a tactical short-term objective rather than an abandoned Bitcoin vision.
