Strategy to Sell Bitcoin for Seven-Year BTC-Per-Share Boost, Avoid Tax Impact
Michael Saylor said Strategy may sell some Bitcoin by year-end to maximize BTC-per-share over seven-year horizon, combining equity and credit moves to avoid underperformance. CEO Phong Le added selling near cost basis will break even and avoid material tax impact on preferred stock investors.
1. Long-Term BTC-Per-Share Strategy
Michael Saylor, executive chairman, said the company’s long-term target is maximizing Bitcoin exposure per share within seven years, warning that strategies limited to equity, credit or Bitcoin alone underperform. He indicated potential Bitcoin sales by year-end to support this target.
2. Bitcoin Holdings
Strategy holds approximately 850,000 Bitcoin on its balance sheet, valued at more than $65 billion, making it the largest corporate holder of the cryptocurrency.
3. Tax-Efficient Sale Plan
CEO Phong Le explained that selling Bitcoin at or near the company’s cost basis would allow it to break even and avoid significant tax liabilities for holders of its preferred equity products.
4. Insider Sales and Market Reaction
Company insiders have sold shares during recent Bitcoin volatility, contributing to a 2.75% stock decline and a modest drop in Bitcoin’s price, while retail sentiment around both assets remains subdued.