Strategy CEO: Strategy can hold through a $30,000 bitcoin, STRC preferred shares explained
BTC.TOP CEO Jiang Zhuoer says concerns that MicroStrategy/Strategy would need to sell large amounts of BTC are overstated. He argues Strategy’s leverage is low and its business model can continue even if bitcoin falls to $30,000.
The debate follows on-chain speculation that about 45,000 BTC left a Fidelity custody wallet from May 28 to June 1, with analysts suggesting Strategy sold gradually near ~$66,000. Jiang says this is not a confirmed sale because the same Fidelity wallet also holds assets backing Fidelity’s BTC and ETH ETFs.
Jiang points to Strategy’s balance sheet: debt is about 5% of assets and would rise to around 10% if bitcoin drops from roughly $62,900 to $30,000. He says Strategy can likely avoid breaking its “never-sell BTC” narrative.
He also defends Strategy’s use of STRC, high-yield preferred shares that pay an 11.5% annual dividend in monthly installments. His logic: Strategy can sell its oldest/lowest-cost bitcoin to book accounting profits to fund dividend payments, while proceeds from new STRC sales are used to buy fresh BTC. If purchases stay ahead of sales, Strategy remains a net buyer.
Still, some observers warn a prolonged bear market could increase interest and eventually force larger BTC sales.
On Monday, bitcoin traded near $63,400 and was down nearly 10% on the week after Strategy reported its first BTC sale since 2022.
Neutral
The CEO’s message is broadly market-soothing, but it is not a concrete new buy/sell datapoint—more a rebuttal to speculation. In the short term, traders may fade the “forced selling” narrative because Strategy’s debt/leverage is argued to be manageable and STRC mechanics are framed as dividend-funded without breaking BTC accumulation. That can reduce downside pressure and tighten spreads on Strategy-related positioning.
However, the claim depends on continued access to STRC issuance and stable purchase-versus-sale dynamics. In a sustained bear market, interest expense and dividend obligations could still translate into larger BTC sales, which aligns with prior episodes where corporate balance-sheet stress increased volatility around treasury holders. Historically, when “treasury policy” narratives get challenged by on-chain outflows, markets often react with higher implied volatility even if the underlying sale is later clarified.
Longer term, if bitcoin stabilizes and STRC demand remains strong, the market may interpret this as structural resilience for Strategy’s BTC strategy (slightly bullish). If BTC keeps falling and issuance conditions tighten, the risk of eventual forced selling remains, keeping the net impact closer to neutral rather than clearly bullish.