Over the past twelve months, Michael Saylor, executive chairman of Strategy (MSTR), has maintained a consistent pattern, posting a playful X message almost every Sunday using a chart with orange dots to suggest a Monday announcement of additional bitcoins. purchases.
The trend seemed to break at least a little this Sunday, with Saylor posting the same chart, but saying, “What if we started adding green dots.”
This subtle change has sparked speculation within the Bitcoin community. Some believe the green dots could signal stock buybacks or balance sheet changes, while others wonder if it is a clue to possible Bitcoin sales.
Adding another twist, Strategy CEO Phong Le reiterated in a podcast appearance that the company has no near-term refinancing risk, but explained that if Strategy’s multiple to net asset value (mNAV) falls below 1, the company could sell bitcoin to fund dividends on its perpetual preferred shares. The also noted that Strategy can selectively sell BTC on a higher cost basis, to offset capital gains in a way that increases bitcoin per share.
Any sale of Bitcoin, for whatever reason, by Strategy would be notable given Michael Saylor’s oft-repeated axiom: “You don’t sell your Bitcoin.”
Strategy, the largest publicly traded company holding Bitcoin with nearly 650,000 BTC, has seen its stock price collapse in recent months, now down 41% year to date and about 70% down from the all-time high reached just over a year ago.
This, in turn, limited its ability to sell common stock in order to raise funds for additional bitcoin purchases. The strategy has instead shifted to issuing preferred shares for bitcoin purchases, but critics question the company’s ability to pay preferred dividends without further diluting common shareholders or selling part of its bitcoin stack.
