For the past twelve months, Strategy (MSTR) Executive Chairman Michael Saylor has maintained a consistent pattern, making a playful X post almost every Sunday using an orange dot chart to suggest a Monday announcement of additional bitcoin purchase.
The pattern appeared to break at least a little bit this Sunday, however, with Saylor posting the same chart but saying, “what if we start adding green dots.”
The subtle change has ignited speculation across the bitcoin community. Some believe that green dots could signal share buybacks or balance sheet changes, while others wonder if it is a hint of possible bitcoin selling.
Adding another plot twist, Strategy CEO Phong Le reiterated in a podcast appearance that the company has no short-term refinancing risk, but explained that if Strategy’s multiple to net asset value (mNAV) falls below 1, the company could sell bitcoin to fund dividends on its perpetual preferred equity. Le also noted that strategy can selectively sell higher cost basis BTC to offset capital gains in a way that increases bitcoin per share. stock.
Any sale of bitcoin for any reason by strategy would be remarkable given Michael Saylor’s oft-repeated axiom: “You don’t sell your Bitcoin.”
Strategy, the largest publicly traded owner of bitcoin with nearly 650,000 BTC, has seen its share price crumble in recent months, now down 41% year-to-date and about 70% down from an all-time high just over a year ago.
That, in turn, has limited its ability to sell common stock to raise funds for further bitcoin purchases. The strategy has instead turned to issuing preferred stock for bitcoin purchases, but critics question the company’s ability to pay preferred dividends without further diluting common shareholders or selling some of its bitcoin stack.
