MicroStrategy Admits a Bitcoin Sale Is Possible—Here’s When

MicroStrategy has confirmed a scenario almost no one thought possible: the potential to sell Bitcoin, its core treasury asset. Speaking on the What Bitcoin Did podcast, CEO Phong Le outlined the precise trigger that would force a Bitcoin sale: First, the company’s stock must trade below 1x mNAV, meaning the market capitalization falls below the value of its Bitcoin holdings. Second, Strategy would need to lose access to all other sources of capital, including equity issuance and debt markets.

This is the first explicit acknowledgement, after years of Michael Saylor’s absolutist claim that “we will never sell Bitcoin.” It shows that MicroStrategy does, in fact, have a kill-switch tied directly to liquidity pressure. mNAV compares MicroStrategy’s market value to the value of its Bitcoin holdings.

The Trigger: mNAV Below 1.0 + Capital Lockout

Le explained that if Strategy’s multiple to net asset value (mNAV) falls below 1.0 — and the company can no longer raise funds through debt or equity issuance — then selling Bitcoin becomes “mathematically justified” to protect Bitcoin yield per share. “I would not want to be the company that sells Bitcoin,” Le added, “but financial discipline has to override emotion when markets turn hostile.”

As of November 30, 2025, mNAV hovers around 0.95x, uncomfortably close to the 0.9x danger zone where dividend obligations could force liquidation. Strategy’s $750–$800 million annual preferred share dividends — nicknamed “FCKED” by Saylor — now loom as a potential catalyst if conditions deteriorate further.

Current Position: 649,870 BTC at $66,385 Average Cost

Strategy holds 649,870 BTC, acquired at an average price of $66,385, for a total cost basis of approximately $43.2 billion. At Bitcoin’s current price near $87,000, the treasury is valued at $56.5 billion — a healthy 31% unrealized gain. Even at $25,000 per BTC, the collateral ratio against all debt would remain above 2.0x, well within covenants.

However, the company’s convertible debt structure means settlements occur in equity, not cash or Bitcoin — providing flexibility unless mNAV collapses and equity issuance becomes impossible.

Why This Admission Matters

For the first time, Strategy has publicly acknowledged that Bitcoin sales are not absolutely prohibited but rather a last-resort option in a liquidity crisis. This revelation:

• Calms immediate fears of forced selling but introduces a clear red line at mNAV < 1.0
• Highlights the tension between the company’s aggressive accumulation strategy and its growing dividend obligations
• May influence institutional holders who have been waiting for clarity on downside protection

Saylor’s “Green Dots” Add Intrigue

The admission coincides with Michael Saylor’s recent “green dots” posts on X — a pattern historically signaling incoming Bitcoin purchases. Some interpret this as a deliberate counter-signal: “We’re still buying, but here’s our exit if things get dire.”

Bottom Line

Strategy’s Bitcoin treasury remains structurally sound, with a massive buffer against even catastrophic price drops. However, CEO Phong Le has drawn a clear line in the sand: if mNAV falls below 1.0 and capital markets lock up, Bitcoin sales become a mathematical necessity to preserve shareholder value.

This isn’t a change in philosophy — it’s a pragmatic contingency plan. And with mNAV already at 0.95, the market is watching closely to see if Strategy’s flywheel of “issue equity when premium exists, buy Bitcoin” can keep turning.