Strategy announced the abandonment of its long-held stance of "never selling" and is shifting towards actively managing its balance sheet.

Written by: Zhao Ying

Source: Wall Street Insight

Strategy is quietly rewriting the core logic of its Bitcoin strategy. The world's largest corporate Bitcoin holder has announced the abandonment of its long-held stance of "never selling" and will shift to actively managing its balance sheet to maximize the value of each Bitcoin per share.

In a conference call for its financial report on Tuesday evening, company president and CEO Phong Le clearly stated that selling Bitcoin for dollars or to pay off debt, as long as it helps increase the value of each Bitcoin per share, is within the company's considerations.

This is the first public announcement of a strategic shift since founder and chairman Michael Saylor established the "never selling" principle.

At the same time, Strategy reported a net loss of $12.5 billion in the first quarter, mainly due to a sharp decline in Bitcoin prices at the beginning of the year. After the news was released, the company's stock fell over 4% in after-hours trading.

From "Hoarding Bitcoin" to "Managing Bitcoin": A Fundamental Shift in Strategy

Phong Le's statement at the earnings call directly highlighted the new direction: "We will not just sit here and say 'never sell Bitcoin' anymore. We want to be net accumulators of Bitcoin—not only increasing our total Bitcoin holdings but, more importantly, increasing each Bitcoin per share, as we believe this is the most valuable thing for MSTR shareholders in the long term."

Each Bitcoin per share is an informal indicator used by Strategy to measure shareholder Bitcoin exposure, reflecting the amount of Bitcoin associated with each share. This indicator will change as the company increases its Bitcoin purchases, issues new shares, or sells Bitcoin for debt management or repurchases. Strategy's BTC returns this year are approximately 9%, which is the growth rate of the Bitcoin holdings per share.

Saylor, in the same call, compared the new strategy to that of a real estate developer, providing a theoretical endorsement for it. He stated that if a company buys land for $10,000 per acre and sells it for $100,000, using the profits to buy more land or to pay interest on debts, no one would think this harms real estate value, nor would anyone say this proves the business model has failed. "The very existence of real estate development companies is to buy land low and sell high," he said, "we are like a Bitcoin development company."

Balance Sheet Pressure Emerges, Dollar Reserves Reach $2.25 Billion

Strategy's change in strategy is not without basis. Last December, the company established dollar reserves, which currently amount to $2.25 billion, specifically to ensure it can meet its preferred stock dividend obligations and pay interest on debt. The company has been financing Bitcoin purchases through the issuance of new shares and bonds.

As of the end of the first quarter, Strategy holds 818,334 Bitcoins, with a total cost of approximately $61.81 billion, an average holding cost of about $75,500 per Bitcoin, accounting for nearly 4% of the total Bitcoin supply. This year, the company has added approximately 63,000 Bitcoins.

The $12.5 billion net loss in the first quarter directly reflects the impact of the Bitcoin price decline at the beginning of the year on book value. In this context, relying solely on passive hoarding without active management clearly faces increasing financial pressure.

The core of this strategic adjustment is the change in the company's performance evaluation indicators—shifting the focus from "how much Bitcoin to hold" to "how much Bitcoin each share represents." This shift means that even in specific circumstances, selling some Bitcoin, as long as it improves the value of each Bitcoin per share, aligns with the company's long-term interests.