Strategy CEO Says Bitcoin Sales Unlikely Before 2029 After Creating $1.44B Dividend Reserves

Strategy CEO Phong Lee said the company is unlikely to sell Bitcoin before 2029, citing a $1.44 billion reserve created to support dividend payments. He said the reserve is intended to reduce the chance the firm would need to liquidate BTC during a prolonged downturn. The cash buffer, he added, separates short-term obligations from the company’s long-term BTC holdings.

Dividend Buffer and 2029 Bitcoin Sale Scenario

Speaking in a recent interview, Lee said the reserve would cover dividends for about 21 months. Management is targeting more than two years of U.S.-dollar coverage. Bitcoin, he added, is held for the long-term needs of the business.

Investor attention has focused on market net asset value, or mNAV. The metric compares Strategy’s equity valuation with the value of its BTC holdings. Lee said issuing common equity to fund dividends becomes unattractive if mNAV falls below 1x because it would not be accretive to shareholders.

The dollar reserve is meant to keep the company from facing that choice. Lee said Strategy does not want to sell BTC. He also said the firm wants to avoid issuing equity below 1x mNAV to meet dividend obligations.

Lee described the scenario that could force a BTC sale. He said it would take a sustained Bitcoin down cycle lasting about three years. During that period, he said, mNAV would need to trade below 1x for the same stretch.

In that case, the company may have to sell BTC, he said. He framed the timing as several years out. Referencing the end of 2025, he said that could push a decision toward 2029 at the earliest.

Bitcoin Buying Plan and Preferred-Share Funding

Lee also addressed how Strategy buys Bitcoin. He said the firm does not attempt to time the market. “We are not Bitcoin traders — we’re Bitcoin investors,” he said, adding that the company buys when it has excess capital or when it raises new funds to deploy.

Strategy’s capital plan is leaning toward preferred shares, Lee said. He described the instruments as more credit-like than common stock. The company has issued perpetual preferred shares and argues the structure is superior to traditional debt and convertible financing.

Lee said markets may take time to fully understand the product. He compared the adjustment to earlier phases of Strategy’s Bitcoin approach. Adoption, he said, could take 18 to 36 months or longer.

He said dividend questions have followed the company as BTC and Strategy shares fluctuate. The new U.S.-dollar reserve was positioned as the answer to that concern. He stated that it gives the company time to keep paying dividends without selling BTC.