Bitcoin treasury firm Strategy breaks from 'never sell' approach to the flagship crypto

In a significant change, Strategy has announced a new strategy regarding its bitcoin holdings during its latest earnings report. The company, known for its previous 'never sell' policy, will now take a more proactive approach to manage its bitcoin balance sheet in order to enhance the value per share for its stakeholders. This pivot comes on the heels of a staggering $12.5 billion net loss in the first quarter, attributed to the downturn in bitcoin prices earlier this year. Phong Le, the company’s president and CEO, indicated during the earnings call that the firm may consider selling bitcoin to convert it into U.S. dollars or to pay off debt if it proves beneficial for bitcoin per share. This change marks a departure from the long-standing philosophy championed by chairman and founder Michael Saylor. To support its operations and ensure it meets obligations related to dividends and debt, Strategy has established a U.S. dollar reserve now valued at $2.25 billion. The company has financed its bitcoin acquisitions through the issuance of new equity and debt. Le emphasized, "We will sell bitcoin when it's advantageous to the company," signaling a more calculated approach moving forward. The concept of 'bitcoin per share' has been introduced as a metric to gauge the amount of bitcoin each share represents. An increase in this metric implies greater exposure for shareholders over time. Changes in bitcoin per share can occur based on purchases of the cryptocurrency, the issuance of new shares, or sales aimed at managing debt. Saylor drew an analogy between Strategy and a real estate development firm, explaining that just as such firms buy land at low prices and sell at high prices for strategic purposes, Strategy aims to enhance its bitcoin holdings effectively. He remarked, "We're like a bitcoin development company," emphasizing the company's goal to optimize its assets. As of the end of the first quarter, Strategy maintained a total of 818,334 BTC, valued at approximately $61.81 billion, acquired at an average price of about $75,500 per coin. This figure represents nearly 4% of the overall bitcoin supply, with the company acquiring around 63,000 BTC year-to-date. Furthermore, they reported a BTC yield of about 9% since the year's start, reflecting the growth in bitcoin per share and the company’s ability to convert capital into bitcoin exposure for its investors.