The “never sell” Bitcoin treasury trade is seriously starting to crack
On Strategy's May 5 earnings call, Strategy CEO Phong Le said plainly that “we will sell Bitcoin when it is advantageous to the company,” with Saylor adding that Strategy would “probably sell some Bitcoin to fund a...
Bitcoin 1 Minute
A notable development has hit the crypto markets. On Strategy's May 5 earnings call, Strategy CEO Phong Le said plainly that “we will sell Bitcoin when it is advantageous to the company,” with Saylor adding that Strategy would “probably sell some Bitcoin to fund a dividend just to inoculate the market. ” Strategy held 818,334 BTC as of May 3, up 22% year-to-date, with a market value of $64. What the May 5 call established was the public normalization of BTC sales as a corporate finance lever and the quantitative framework now sitting behind it Below roughly 1.
22x mNAV, management said selling BTC and paying dividends can be more accretive than issuing common equity. Saylor argued that if Bitcoin appreciates by just 2. 3% annually, Strategy's current reserve can fund dividends “forever,” and if Bitcoin appreciates at zero, the reserve can still support dividends for 43 years.
Market Dynamics
The absolutist slogan gave way to a model in which companies that buy when accretive, issue equity when accretive, issue preferreds when accretive, and sell BTC when accretive are leveraged treasury-and-credit vehicles. Investors originally bought these companies as Bitcoin proxies built on scarcity and permanence. 22x mNAV threshold and the 2.
3% breakeven rate are a more honest version of that pitch, and a more complicated one. Related Reading Strategy to “sell some Bitcoin” after posting $12. 7 billion Q1 loss as Saylor points to $5 billion Bitcoin gain The company’s BTC Gain metric is colliding with Wall Street forecasts for a first-quarter loss tied to Bitcoin’s drawdown.
May 6, 2026 Oluwapelumi Adejumo An infographic outlines Strategy's 1. 22x mNAV threshold, showing when selling Bitcoin to fund dividends becomes more accretive than issuing common equity. When Bitcoin becomes liquidity Sequans reported first-quarter revenue down 24.
Market Impact
8% year over year to $6. 1 million, alongside a $50. 5 million operating loss.
The first quarter included $11. 7 million in realized net losses from Bitcoin sales, with proceeds primarily allocated to convertible debt redemption and an ADS buyback program. 31, it held 1,514 BTC, with 1,217 BTC serving as collateral against $66.
2 million of convertible debt. 30, it held 1,114 BTC, with 817 BTC serving as collateral against $35. 9 million of debt due by June 1.
Crypto markets are watching this development closely as investors weigh its potential impact on prices.
