MicroStrategy CEO Phong Le has, for the primary time, acknowledged that the corporate might promote its 649,870 BTC holdings underneath particular disaster circumstances.
This marks a major shift from Chairman Michael Saylor’s long-standing “by no means promote” philosophy and alerts a brand new chapter for the world’s largest company Bitcoin holder.
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MicroStrategy has confirmed a situation nearly nobody thought attainable: the potential to promote Bitcoin, its core treasury asset. Talking on What Bitcoin Did, CEO Phong Le outlined the exact set off that might pressure a Bitcoin sale:
- First, the corporate’s inventory should commerce beneath 1x mNAV, that means the market capitalization falls beneath the worth of its Bitcoin holdings.
- Second, MicroStrategy have to be unable to boost new capital via fairness or debt issuance. This is able to imply capital markets are closed or too costly to entry.
Le clarified that the board has not deliberate near-term gross sales, however confirmed that this feature “is within the toolkit” if monetary circumstances deteriorate.
That is the primary specific acknowledgement, after years of Michael Saylor’s absolutist declare that “we are going to by no means promote Bitcoin.” It exhibits that MicroStrategy does, actually, have a kill-switch tied on to liquidity stress.
Why the 1x mNAV Threshold Issues
mNAV compares MicroStrategy’s market worth to the worth of its Bitcoin holdings. When mNAV drops beneath 1, the corporate turns into price lower than the Bitcoin it owns.
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A number of analysts, together with AB Kuai Dong and Larry Lanzilli, observe that the corporate is now dealing with a brand new constraint. The mNAV premium that powered its Bitcoin-accumulation flywheel has almost vanished for the primary time since early 2024.
As of November 30, mNAV hovers close to 0.95x, edging uncomfortably near the 0.9x “hazard zone.”
If mNAV falls beneath 0.9x, MicroStrategy might be pushed towards BTC-funded dividend obligations. Beneath excessive circumstances the agency can be compelled to promote parts of its treasury to take care of shareholder worth.
The stress stems from $750–$800 million in annual most well-liked share dividend funds, issued throughout MicroStrategy’s Bitcoin enlargement.
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Beforehand, the corporate used new fairness issuances to cowl these prices. With the inventory down greater than 60% from its highs and market skepticism rising, that avenue is narrowing.
Analysts Warn of a Structural Shift
Based on Astryx Analysis, MicroStrategy has successfully remodeled right into a “leveraged Bitcoin ETF with a software program firm connected.” That construction works when BTC rises, however amplifies stress when liquidity tightens or volatility spikes.
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SEC filings have lengthy warned about liquidity threat throughout a deep Bitcoin drawdown. Whereas the agency maintains that it faces no compelled liquidation threat attributable to its convertible debt construction, the CEO’s newest feedback verify a mathematically outlined set off for voluntary gross sales.
Why This Issues for Bitcoin Buyers
MicroStrategy is the biggest company BTC holder on this planet. Its “HODL ceaselessly” stance has been a symbolic pillar of the institutional Bitcoin thesis. Acknowledging a promote situation, even when distant, shifts that narrative towards realism:
- Liquidity can override ideology.
- Market construction issues as a lot as conviction.
- The Bitcoin cycle now has a brand new, and measurable, threat threshold: the 0.9x mNAV line.
Buyers will watch Monday’s updates carefully as analysts observe whether or not mNAV stabilizes or continues slipping towards 0.9x.
Any additional weak spot in BTC or MSTR inventory might intensify scrutiny of MicroStrategy’s stability sheet technique heading into 2026.