Author: Allard Peng
Compiled by: Saoirse, Foresight News
Recently, Strategy company announced that it might sell some of its Bitcoin to achieve operational goals, which has caused a stir in the market. The company had previously steadfastly maintained a position of never selling its Bitcoin holdings, with Saylor even joking in a post that he would rather liquidate assets than sell Bitcoin.
In fact, for enterprises holding Bitcoin reserves, selling Bitcoin has always been a viable operational option. 'Never selling' merely reflects a long-term investment philosophy, aligning with the prevalent long-term mindset in the crypto field. Even though the market generally advocates holding (HODLing), selling Bitcoin remains a rational choice in many scenarios.
On an individual level, selling Bitcoin is often for life improvements, such as purchasing property, traveling, funding children's education, or covering large unexpected medical expenses. For enterprises, the core tenet of all operational decisions is to enhance shareholder equity.
In Q1 2026, Bitcoin miners collectively sold 25,376 Bitcoin, using the proceeds to pivot their businesses towards artificial intelligence. The management determined that the risk-reward ratio of AI projects was higher than holding Bitcoin. This leads to a fundamental logic: it is reasonable to sell Bitcoin to acquire other assets when there are investment targets with higher potential returns. For companies like Strategy that hold Bitcoin, selling can also create tangible value, specifically for five reasons.
Reason One: Increasing Bitcoin Holdings Per Share
Bitcoin holdings per share is the core operational objective for companies managing reserve assets; the periodic growth of this metric represents the Bitcoin return rate. The conventional method is to purchase more Bitcoin to increase total holdings, or to repurchase shares to reduce the float. Both methods can increase the Bitcoin-per-share figure.
If the company's stock price is lower than the value of its corresponding Bitcoin assets, selling Bitcoin to repurchase shares will ultimately increase the Bitcoin holdings per share. The decrease in Bitcoin holdings will be smaller than the reduction in share count. When a company's operating cash flow cannot cover fixed expenses like preferred stock dividends or bond interest, and the stock price is undervalued, selling Bitcoin to pay debts and interests can minimize the dilution of Bitcoin holdings per share.
Reason Two: Optimizing Capital Structure, Lowering Financing Costs
Rating agencies profoundly influence capital market flows. Adhering to their assessment rules can help companies secure financing smoothly. Previous related reports have analyzed feasible ways to improve credit ratings, as a good rating can effectively reduce a company's financing costs.
S&P recognizes the value of cash reserves. Strategy subsequently adopted this approach. As of January 2026, the company's cash reserves reached $2.2 billion, significantly alleviating investor concerns about its inability to pay preferred stock dividends.
Companies can sell Bitcoin to bolster cash reserves, meeting capital market requirements and subsequently issuing bonds for financing at lower costs. Concurrently, selling Bitcoin to repay debt can reduce senior liabilities, enhancing the attractiveness of preferred stock financing.
In the long run, differences in financing rates can amplify return disparities through the compounding effect. Low-cost debt can alleviate operational burdens and increase revenue.
Reason Three: Legal Tax Planning
Currently, there are no wash-sale restrictions for Bitcoin in the U.S. Companies can sell Bitcoin to realize paper losses and then repurchase it, lowering the tax basis of the asset to offset tax liabilities. Strategy utilized this tactic back in the market downturn of 2022.
This tax advantage remains in effect. Companies can combine loss-harvesting policies with operations like share buybacks and debt repayment to achieve multiple benefits.
Reason Four: Dispelling Negative Market Sentiment
The Bitcoin industry is relatively young, and various negative rumors abound. Some unfounded claims suggest that if Strategy sells Bitcoin, it would directly impact the entire crypto market, invalidating the company's Bitcoin accumulation model.
If a company sells 50,000 Bitcoin and neither the market price nor its own stock price experiences significant volatility, it can shatter these rumors, allowing the capital market to accept the business model of holding Bitcoin as an asset.
The market possesses self-correcting mechanisms. Sensationalism is often created by media and influencers. Professional investment institutions base decisions on actual research and are not swayed by one-sided narratives. This is the most subjective of the five reasons.
Reason Five: Repurchasing Preferred Stock at a Discount
This operational strategy is less frequently mentioned in the market. When the price of floating-rate financial products significantly deviates from their par value, companies can repurchase them at prices far below face value, clearing high-cost liabilities.
This operation is equivalent to closing the company's own short position on preferred stock without interest or borrowing costs. Taking the STRC product as an example, with an issuance par value of $100, if the price falls to $82, the company can use funds from selling Bitcoin to repurchase shares at a low price, earning an $18 difference per share, and this profit is not subject to taxation.
Price Trend of STRC Since Its Initial Public Offering
A decline in preferred stock price does not necessarily coincide with a Bitcoin market crash; leveraged trading can easily trigger chain reactions of selling. Companies can take advantage of low prices to repurchase shares, avoiding future funding drain from potential dividend rate increases.
Conclusion
Enterprises selling Bitcoin should not necessarily be viewed as a bearish signal. In many contexts, selling can protect the interests of the company and its shareholders. Bitcoin possesses monetary attributes, providing companies with flexible capital allocation space. Utilizing assets rationally is key to maximizing their value.
