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Bitcoin Updates: Strategy Retains Bitcoin Even as Price Surges Over 51%, Confident in Long-Term Worth

Bitcoin Updates: Strategy Retains Bitcoin Even as Price Surges Over 51%, Confident in Long-Term Worth

Bitget-RWA2025/12/01 06:32
By:Bitget-RWA

- Strategy , holding 649,870 BTC, plans to expand crypto holdings despite 51% of its stash bought above $86,900. - CEO Phong Le stated Bitcoin sales would only occur if stock drops below net asset value and capital access dries up. - The firm defends Bitcoin's long-term value as a scarce asset, despite ETF outflows and liquidity stress in the broader market. - Strategy's $74,430 average cost basis and $56.4B BTC value create a structural advantage for capital raising at mNAV premiums. - Market dynamics sho

Strategy's Commitment to Expanding Bitcoin Holdings

Strategy, recognized as the largest corporate owner of Bitcoin with a reserve of 649,870 BTC, has reaffirmed its intention to grow its cryptocurrency portfolio, even amid significant price fluctuations. Notably, more than half of its Bitcoin was purchased at prices exceeding the current $86,900 mark. CEO Phong Le has stated that the company would only contemplate selling its Bitcoin assets under severe financial duress—specifically, if the company's stock value falls below its net asset value (mNAV) and it is unable to secure new funding.

Strategy Bitcoin Holdings

This approach highlights Strategy's long-term confidence in Bitcoin as a globally attractive, limited-supply asset. The company continues to pursue its accumulation strategy despite facing challenges such as ETF outflows and tightening liquidity in the broader market.

Insights into Strategy's Bitcoin Acquisitions

According to CryptoQuant, the fact that 51% of Strategy's Bitcoin was acquired during the high-price periods of 2021, 2024, and early 2025 underscores the company's aggressive accumulation during market peaks. While the average acquisition cost stands at $74,430 per Bitcoin, the market currently values the company's stock (MSTR) below the $56.4 billion worth of its Bitcoin holdings. This discrepancy allows Strategy to raise capital at a premium to its mNAV, providing a structural advantage.

However, bearish market trends—including over $270 million in recent spot and ETF outflows—have kept Bitcoin trading below key moving averages, making further accumulation more challenging.

CEO's Perspective on Bitcoin Sales and Financial Strategy

Phong Le emphasized that any decision to sell Bitcoin would be based strictly on financial calculations rather than a change in company direction. He detailed a backup plan to meet annual dividend commitments of $750 million to $800 million by issuing equity at a premium to mNAV, thereby avoiding both shareholder dilution and the need to liquidate Bitcoin holdings. Le also highlighted the company's strong balance sheet, noting that even if Bitcoin's price dropped to $25,000, Strategy's debt would remain well-covered.

To further boost investor confidence, the company has introduced a "BTC Credit" dashboard, offering transparent updates on dividend coverage and liquidity status.

Market Conditions and Strategic Outlook

Recent data from CryptoQuant suggests that Bitcoin is in a transitional phase, with liquidity stress indicators at -0.28 and scarcity metrics easing from previous highs. While large investors have started accumulating Bitcoin in the $85,000–$90,000 range, retail interest remains subdued. Binance's recent volatility has underscored its significance as a key liquidity provider in the market.

Maintaining an mNAV above 1 and ensuring continued access to capital are crucial for Strategy. Should these thresholds be breached, the company may need to reevaluate its Bitcoin strategy.

Balancing Growth and Shareholder Value

Strategy's approach demonstrates a careful balance between holding Bitcoin through various market cycles and safeguarding shareholder interests. With its average acquisition cost still profitable and clear criteria for any potential sale, the company appears determined to uphold its Bitcoin treasury strategy unless faced with extraordinary market or funding pressures.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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