Strategy CEO Phong Le outlines conditions for selling Bitcoin

For years, Strategy’s Bitcoin playbook could be summarized in two words: never sell. That era is technically over, but the replacement policy is so restrictive it might as well be the same thing.

CEO Phong Le has laid out the specific, narrow conditions under which Strategy, formerly known as MicroStrategy, would consider parting with any of its 818,334 Bitcoin. The short version: only if the company’s stock falls below its net asset value and every other funding option has been exhausted first.

The new framework

The new principles permit Bitcoin sales exclusively as a last resort. Two conditions must be met simultaneously. First, Strategy’s stock must be trading below its mNAV, or modified net asset value, meaning the market is valuing the company at less than its Bitcoin is worth. Second, all alternative funding methods, including equity raises and debt issuance, must have already been tried and failed.

The guiding metric behind these decisions is what Le calls “Bitcoin per share,” or BPS. Every capital allocation decision the company makes gets filtered through one question: does this grow the amount of Bitcoin attributable to each outstanding share? If selling a small amount of Bitcoin somehow protects or grows BPS for remaining shareholders, it’s on the table.

Why they probably won’t need to sell

Strategy has built a multi-year USD cash buffer that covers two to three years of preferred dividend obligations. Preferred dividends are fixed payments the company owes regardless of Bitcoin’s price action, and they represent the most obvious near-term pressure that could force a sale.

Le pointed to a recent $1.44 billion equity raise that the company completed in just 8.5 days as evidence that Strategy can tap traditional funding sources quickly when needed. That raise was, in Le’s framing, a deliberate strategic move designed specifically to avoid selling Bitcoin.

As long as Strategy’s stock trades above mNAV, the company can issue new shares at a premium to its Bitcoin holdings’ value. Every share sold above mNAV actually increases BPS for existing holders. It’s dilutive in share count but accretive in Bitcoin per share.

From MicroStrategy to Strategy

Strategy’s 818,334 Bitcoin on its balance sheet as of Q1 2026 represents an enormous concentration bet. The company rebranded from MicroStrategy to Strategy as part of its pivot toward becoming a leveraged Bitcoin vehicle with a software business attached.

Michael Saylor, the company’s co-founder and executive chairman, became the public face of corporate Bitcoin accumulation. Le, who took over as CEO, has maintained Saylor’s conviction while adding a layer of operational pragmatism, shifting from “never sell” to “sell only under extreme duress.”

What this means for investors

The market reaction following Le’s announcement showed no significant selling pressure, with Bitcoin prices actually increasing. CEO Le indicated the market remained unfazed by earlier potential sales comments.

The BPS framework gives investors a clearer lens for evaluating management decisions. Rather than guessing whether the next equity raise or convertible bond offering is smart, shareholders can simply check whether it grew Bitcoin per share.

The two-to-three-year cash buffer buys time against a prolonged Bitcoin bear market combined with a stock price below mNAV and frozen capital markets. If those conditions materialized simultaneously, Le’s framework would require Bitcoin sales to keep the company solvent.