Strategy Signals Limited Bitcoin Sales to Cover Dividends Without Shaking BTC Markets

Strategy CEO Phong Le says the company may periodically sell small portions of its Bitcoin reserves to meet financial obligations tied to its preferred stock offerings, while insisting the moves would have little effect on the broader crypto market.

In a recent interview, Le explained that the firm could use Bitcoin sales to fund payouts linked to its Series A Perpetual Stretch Preferred Stock, which offers investors an 11.5% yield. The company may also liquidate BTC holdings when necessary to manage tax liabilities.

However, Le stressed that any sales would only happen if they strengthen shareholder value by improving Strategy’s Bitcoin-per-share position rather than weakening it.

The remarks followed recent comments from co-founder Michael Saylor, who acknowledged the company could occasionally offload Bitcoin to support dividend payments. His statements sparked concerns among investors worried that large treasury firms selling BTC could create downward pressure on prices.

Saylor said the company may intentionally execute limited Bitcoin sales to normalize the idea in the market and reduce investor anxiety around future transactions. He also argued that if Bitcoin continues appreciating at a rate above 2.3% annually, Strategy could sustainably fund dividend obligations without issuing additional shares.

Strategy currently controls 818,334 BTC worth more than $66 billion, maintaining its position as the world’s largest publicly traded Bitcoin treasury firm.

Despite the size of its holdings, Le argued that the market can comfortably absorb the company’s potential sales activity. With Bitcoin’s daily trading volume hovering around $60 billion, he said the firm’s annual dividend obligations — estimated at just over $1 billion — represent only a small fraction of overall market liquidity.