MicroStrategy’s Bitcoin Strategy Shifts: Contingency Plans Emerge Amid Market Pressures

With 649,870 BTC, MicroStrategy, the biggest corporate Bitcoin holder worldwide, has formally admitted for the first time that under severe catastrophe circumstances it might sell some of its treasury Bitcoin, a significant deviation from Michael Saylor's decade-long “never sell” philosophy. Newly appointed CEO Phong Le revealed particular, previously unpublished triggers that could compel the business's hand in a recent interview, emphasizing that although there are no present plans to liquidate, the board has contingency alternatives baked into its policy.

The three obvious sale triggers are: (1) persistent stock trading below 1x market-adjusted net asset value (mNAV), with the current ratio at about 0.95x and nearing a self-defined 0.9x "danger zone" where market cap would fall below the spot value of its Bitcoin holdings; (2 significant capital-market shutdown avoiding the raising of fresh equity or debt on fair conditions; and (3 failure to pay the nearly $750–800 million in yearly preferred-stock dividends through other financial sources. These circumstances emphasize rising liquidity issues connected to MicroStrategy's $8.2 billion debt level and a share price that has plummeted more than 60% from its 2024 peak.

Especially given the company's continuous fierce purchasing of Bitcoin, analysts are viewing the disclosure more as practical risk management than an approaching fire sale. Still, the simple recognition that Bitcoin is no more impenetrable in all circumstances signals a turning point—and for many long-term holders, unpleasant—change in MicroStrategy's corporate treasury strategy.