Strategy "Bitcoin may be sold if stock mNAV falls… selling is a last resort"

Strategy, known for its Bitcoin holding strategy, said it may sell Bitcoin if the stock's mNAV (multiple to Net Asset Value, multiple to net asset value) falls below 1.

On the 30th (local time), Phong Le, Strategy's CEO, said in an interview on the podcast 'What Bitcoin Did', "If the stock mNAV falls below 1 and raising capital becomes difficult, selling some Bitcoin is mathematically justified," explaining, "This is a measure to preserve the Bitcoin yield per share."

He said, "I do not want the company to be one that sells Bitcoin. But if market conditions deteriorate sharply, financial judgment must take precedence over emotions."

mNAV (multiple to Net Asset Value, multiple to net asset value) is a key indicator showing how much Strategy's corporate value is trading at a premium or discount relative to the value of its held Bitcoin. If mNAV is above 1, the stock is valued higher than the asset value, so raising capital through new share issuance imposes a relatively lower dilution burden on existing shareholders. Conversely, if mNAV falls below 1, it means the stock is valued below net asset value; in that case, issuing additional equity would cause greater dilution for existing shareholders, making capital raising practically difficult.

Strategy's model raises capital and purchases additional Bitcoin when the stock trades at a premium to net asset value, thereby increasing the 'Bitcoin holdings per share.' CEO Le said, "If the premium disappears and financing channels close, selling some held Bitcoin may be more rational to fulfill minimum obligations and preserve shareholder value," adding, "however, this is only a last resort."