Strategy CEO Says Bitcoin Sales Unlikely Before 2029 as Firm Builds $1.44B Dividend Buffer

Strategy CEO Phong Lee says the company is unlikely to sell its Bitcoin holdings before 2029, pointing to a newly established $1.44 billion cash reserve designed to support dividend payments during market downturns. According to Lee, the reserve minimizes the risk of needing to liquidate Bitcoin, allowing the firm to separate short-term dividend obligations from its long-term BTC strategy.

Lee noted that the reserve currently covers about 21 months of dividend payments, with a target of more than two years of U.S.-dollar coverage. He emphasized that Strategy views Bitcoin as a long-term asset and not something to be traded based on market cycles. Much of investor focus, he added, has shifted toward market net asset value (mNAV), which compares the company’s equity valuation with the value of its Bitcoin holdings. Issuing new common equity becomes unattractive if mNAV falls below 1x, Lee explained, because doing so would no longer be accretive to shareholders.

The reserve is intended to prevent the company from having to choose between maintaining dividends and protecting Bitcoin reserves. Lee reiterated that Strategy has no interest in selling BTC or issuing equity below 1x mNAV. However, he outlined a scenario that could force a sale: a prolonged Bitcoin downturn lasting roughly three years, combined with mNAV trading below 1x for the same period. If that happened, he said, a Bitcoin sale might become necessary, with the earliest potential timing around 2029.

Lee also discussed Strategy’s Bitcoin acquisition approach, stressing that the firm buys BTC with excess capital rather than timing the market. The company expects preferred shares to play a larger role in future fundraising, describing them as more credit-like than common equity. He noted that markets may take 18 to 36 months to fully adjust to the product, similar to earlier phases of Strategy’s Bitcoin strategy.

According to Lee, the expanding dollar reserve provides the firm with flexibility to continue paying dividends without compromising its long-term Bitcoin position.