Strategy selling
4 key benefits
1. First, protect the capital structure and the stability of the preferred shares (STRC)
Selling about 7,000 $BTC is mainly used to pay preferred share dividends, replenish U.S. dollar cash reserves, and repurchase part of the preferred shares. Maintain commitments to preferred shareholders.
2. Significantly strengthen the balance sheet
Net liabilities are reduced to nearly zero, and billions of dollars in cash are accumulated. This balance sheet allows subsequent issuances of MSTR common stock to be made at a premium; then, using the proceeds to buy back Bitcoin. This is beneficial to the “number of Bitcoins per share.”
3. Two-way flexible strategy
Actually selling a small portion—less than 1% of total holdings—means proving to the market that the company has the capability and willingness to use Bitcoin, when needed, to protect the capital structure. This makes it easier for the company to continue accumulating Bitcoin under favorable conditions.
4. Over the long term, still a net buyer
The amount sold is far less than the total accumulated over the year; overall, the company remains a net buyer.$TRUMP