When Would Michael Saylor (MicroStrategy) Sell Bitcoin?

[Ethan_Crypto]

MicroStrategy's 8-K disclosure states: "We may sell bitcoin to meet financial obligations, and such sales could occur at prices below our cost basis or at otherwise unfavorable prices." (This is standard language in all their 8-K reports)
However, it's unlikely MicroStrategy would sell even a single satoshi.

Here's why:
If forced to liquidate for any reason, it would trigger significant market collapse, creating a downward spiral where they'd need to sell more and more BTC at increasingly worse prices.
MicroStrategy would do everything possible to avoid this outcome. If they ever reached a point where they absolutely had to sell their Bitcoin holdings, it would likely mean a terminal scenario for Bitcoin had already begun.
That said, difficulty in repaying individual convertible notes wouldn't by itself trigger such an apocalyptic Bitcoin scenario.

In essence, MicroStrategy's Bitcoin strategy appears to be genuinely long-term, with selling as an absolute last resort that they would strenuously avoid through alternative financing options.

[apogio]

They 're building their entire product on Bitcoin. They don't store Bitcoin just as a hedge against inflation. They are serious about it, so don't expect them to sell soon.

[asriloni]

It's only strategy's standard risk disclosure practice, and they always mentioning it in any of their reports since a few years ago. They have debt, and such case may happen only if BTC is falling even further. They're still 10% - 15% above from their average Bitcoin buying price.

As long as Bitcoin won't fall to the critical price, they're fine. I see nothing special in this case, yet many people used it to FUD.

[Free Market Capitalist]

I have followed the company quite a bit since 2021 or so. A few years ago I bought shares and sold them at a profit. Then last summer I bought again and am still holding, for very long term.

MSTR's financial structure has essentially changed over the years basically in that they don't have any debt with collateral, so a price drop can't force a sale. Obviously if the price were to drop much, say below $1K the shares would go to fucking shit and the whole financial set up as a bitcoin financial services entity, well so would they. In that scenario I could believe that such a possibility of selling bitcoin would be contemplated but I see it as extremely unlikely.

[nutildah]

If some kind of fuckup with Microstrategy happens where they are forced to sell, it will be because of company mismanagement, and yeah its definitely gonna impact the price and mood.

In essence, MicroStrategy's Bitcoin strategy appears to be genuinely long-term, with selling as an absolute last resort that they would strenuously avoid through alternative financing options.

To play devil's advocate, it appears the company currently holds close to zero assets outside of Bitcoin.

http://www.strategy.com/
"As of September 30, 2024, the Company had cash and cash equivalents of $46.3 million, as compared to $46.8 million as of December 31, 2023, a decrease of $0.5 million." - MicroStrategy Announces Third Quarter 2024 Financial Results and Announces $42 Billion Capital Plan

Combining software, cash & other holdings, non-BTC holdings make up just 1.3% of Microstrategy's total asset value. So theoretically they would be forced to liquidate BTC if the company spent more than this and was no longer able to print new shares to buy more BTC.

[348Judah]

In essence, MicroStrategy's Bitcoin strategy appears to be genuinely long-term, with selling as an absolute last resort that they would strenuously avoid through alternative financing options.

The beauty in a long term investment is to hold for the market to have risen to a certain extent and then sell in other to come back and reinvest by buying the dip and hold again, in his case, holding it does not make anything different to him and the community than when he can realized the potential period for selling at a particular time and buy again to later sell in the future, of course every one of us cannot be a holder, such will not work over the system, we need to sell and keep buying and the same process continually.

[sheenshane]

I don't think so, it could be a definite no for me, IMO.
If I'm correct, they bought their Bitcoin at a price between $17k and $20k (correct me if I'm wrong), and we have already surpassed the ATH price in the market.
Why would they think about selling it?

Could their debt be the reason for selling?
I don't believe that selling their Bitcoin is their priority option, they still have stock to cover it.

[Fiatless]

In essence, MicroStrategy's Bitcoin strategy appears to be genuinely long-term, with selling as an absolute last resort that they would strenuously avoid through alternative financing options.

The company seems to have full confidence in Bitcoin. However, the global economic condition is dynamic and unpredictable. Some conditions might necessitate selling their Bitcoin. There might also be a change of management which can deviate from the guiding principles put in place by Micheal Saylor. A massive dump from the company might lead to decline in Bitcoin price.  But as usual the market will recover after sometime.

[Free Market Capitalist]

I don't think so, it could be a definite no for me, IMO.
If I'm correct, they bought their Bitcoin at a price between $17k and $20k (correct me if I'm wrong),

You are wrong.

MicroStrategy owns 528,185 bitcoins as of April 1, 2025. MicroStrategy states the average purchase price as $66,384.56 USD per bitcoin with a total cost of $33.139 billion USD.

Could their debt be the reason for selling?
I don't believe that selling their Bitcoin is their priority option, they still have stock to cover it.

I have explained it before. Since they have no collateralized debt, there is nothing to trigger a margin call. The thing is, as Saylor has said repeatedly, the future of MSTR is tied to the future of bitcoin.

[takuma sato]

A lot of FUD in the market about this triggered a massive selloff + the BTC dip to 74k didn't help. The truth is, Strategy has less leverage than 99% of the population which have their entire networths stuck in mortgages of 20+ year duration at way higher interest rates. Saylor gets really low interest rates and has an entire team working on ways to raise debt in a way that doesn't wreck them. A lot of confused people think that if BTC goes below their buy average the will get liquidated. BTC would need to go under 5 figures for they to start thinking about selling BTC and it would need to happen at a certain moment too, they have time. It's very unlikely and the odds are against the bears which were wrecked during the 2022 bear market.

[Dunamisx]

In essence, MicroStrategy's Bitcoin strategy appears to be genuinely long-term, with selling as an absolute last resort that they would strenuously avoid through alternative financing options.

The company seems to have full confidence in Bitcoin. However, the global economic condition is dynamic and unpredictable. Some conditions might necessitate selling their Bitcoin. There might also be a change of management which can deviate from the guiding principles put in place by Micheal Saylor. A massive dump from the company might lead to decline in Bitcoin price.  But as usual the market will recover after sometime.

I agree with you on this, they may have it to sell their bitcoin now or later, this may also not means a significant effect on the market, because they have their own personal adopted strategy used in buying as well if the are indeed going to sell, i think many will anticipate seeing them make such decision for sale when that time comes, but obviously, they cant be holding forever, they must still have to sell at the right time they think its due for such.

[hugeblack]

You will sell a company at some point, so investors have no choice but to make a profit, but the option to sell will be either because the price has risen significantly or there is a need to sell, but betting on not selling is not accurate.

[Ambatman]

The thing is, as Saylor has said repeatedly, the future of MSTR is tied to the future of bitcoin.

Yeah but Michael Saylor isn't the only shareholder in MSTR.

https://protos.com/microstrategy-admits-it-might-need-to-sell-bitcoin-by-2026/

There are quite some obligations they have to meet
The funds they are using are from investors and if said investor wants to move out
They have to sell if there are no cash or other asset to sell.

I don't think so, it could be a definite no for me, IMO.
If I'm correct, they bought their Bitcoin at a price between $17k and $20k (correct me if I'm wrong), and we have already surpassed the ATH price in the market.

They have been buying continuously
So their average have finally crossed $60K mark.

[pushups44]

The only way Strategy would sell significant amounts of Bitcoin is if they were forced to through sustained low prices from a prolonged bear market. So long as Bitcoin continues to outperform the traditional markets, even with bear markets that are short-lived, the company should do well.

[yhiaali3]

As for Michael Saylor, I believe he has no intention of selling his Bitcoin at all. I recall him stating that he would burn his Bitcoin after his death as a gift to the Bitcoin community, as he has no heirs to inherit it.

As for Strategy, it seems their only option is not to sell any Bitcoin at this time, as the vast majority of the company's assets are based on Bitcoin. Therefore, any sale at this time could cause the company's stock to plummet and further deteriorate, rather than solve their problem. It seems their only option is to wait for the price to rise significantly, which would allow them to sell a smaller amount of Bitcoin while still not impacting the stock price.

[Darker45]

A terminal scenario for Bitcoin just because a single whale decides to sell? You're like saying Bitcoin's life is in Strategy's hands. You're like saying Bitcoin's existence is at the mercy of Michael Saylor. You couldn't be more wrong!

Anyway, Strategy's existence is dependent on Bitcoin. So, I don't think they'd just sell their Bitcoin. They might when the situation badly calls for it, but I don't think it would trigger a market collapse. In the first place, Strategy's option isn't just either hodling them or selling them all at once. They could sell a tiny portion if they badly need to. They don't have to sell everything. That would be suicide.

In the absence of such urgent reason to sell, I don't think Strategy will do it. So far, it appears Saylor is meant to carry his coins with him to the grave.

[jcojci]

MicroStrategy can sell their Bitcoin anytime they want but I guess they will sell when the price hit the highest price. But if they need to meet financial obligations, they can sell it and buy back for more especially when the price is down.

We do not know when they will sell Bitcoin because we also don't know what is their strategy. But I am sure they use Bitcoin as their long term investment. But even if they sell Bitcoin because of liquidate and trigger significant market collapse, Bitcoin will be back to normal because that will only temporary.

We already have seen what happen with Bitcoin so far so we don't have to worry with anything. If we see the market collapse, that will be our time to accumulate more because the big discount come in front of us. We should use that for our benefit.

[BlackBoss_]

MicroStrategy's 8-K disclosure states: "We may sell bitcoin to meet financial obligations, and such sales could occur at prices below our cost basis or at otherwise unfavorable prices." (This is standard language in all their 8-K reports)
However, it's unlikely MicroStrategy would sell even a single satoshi.

Before making too confident statement like this, you must check Strategy (MicroStrategy)'s Bitcoin portfolio and its investment history.

Checking it can help you finding an interesting information that Strategy sold bitcoin in the past. Do you believe me with this information?
If you don't, check more.
https://saylortracker.com/

Type Ctrl+F + SOLD, you will get this sold transaction in December 22, 2022.
https://www.sec.gov/Archives/edgar/data/1050446/000119312522313098/d398241d8k.htm

On December 28, 2022, MicroStrategy Incorporated (“MicroStrategy”) announced the following:
    •       During the period between November 1, 2022 and December 21, 2022, MicroStrategy, through its wholly-owned subsidiary MacroStrategy LLC (“MacroStrategy”), acquired approximately 2,395 bitcoins for approximately $42.8 million in cash, at an average price of approximately $17,871 per bitcoin, inclusive of fees and expenses.
    •       On December 22, 2022, MacroStrategy sold approximately 704 bitcoins for cash proceeds of approximately $11.8 million, at an average price of approximately $16,776 per bitcoin, net of fees and expenses. MicroStrategy plans to carry back the capital losses resulting from this transaction against previous capital gains, to the extent such carrybacks are available under the federal income tax laws currently in effect, which may generate a tax benefit.
    •       On December 24, 2022, MacroStrategy acquired approximately 810 bitcoins for approximately $13.6 million in cash, at an average price of approximately $16,845 per bitcoin, inclusive of fees and expenses.

They can say anything they want, do anything they can do with their business financial budget if matches with their company vision. However, you can not prohibit Stragegy don't sell any bitcoin. They might or might not sell bitcoins in future, but the Bitcoin market is bigger than Strategy and if they sell bitcoins, the Bitcoin market will not die.

[Majestic-milf]

 When will he sell he sell his Bitcoin? It's not something that can be guessed at the moment because it's just one time he did that and that was three years ago with reasons best known to him
 MStr as the company is now known have continued to flex their muscle where Bitcoin is concerned so it's going to be highly unlikely that he'd sell soon.

[Swordsoffreedom]

Anyway, Strategy's existence is dependent on Bitcoin. So, I don't think they'd just sell their Bitcoin. They might when the situation badly calls for it, but I don't think it would trigger a market collapse. In the first place, Strategy's option isn't just either hodling them or selling them all at once. They could sell a tiny portion if they badly need to. They don't have to sell everything. That would be suicide.

The amount of bitcoin  that Strategy holds is  huge ,  and it accounts for half of the company's capitalization, so it can be said their existence depends on bitcoin. But that also means they are willing to sell bitcoin, even all of it, if the company's finances get into trouble.

That would also have a serious impact on the market, because although bitcoin's market capitalization is nearly $2 trillion, its trading volume is only around $50 billion per  day .  That is why when the German government or Mt.gox sells just a few billion dollars it is enough to cause panic in the market, let alone liquidate 10 or 20 billion dollars into the market.

In the absence of such urgent reason to sell, I don't think Strategy will do it. So far, it appears Saylor is meant to carry his coins with him to the grave.

They can't decide that on their own, it will depend on the tariff war and the economic situation. Saylor invests in bitcoin just for profit, money like all of us, I don't believe the claim that he will never sell his bitcoin.