Big Strategy (MSTR) News Coming Tomorrow?

Strategy (MSTR) Executive Chairman Michael Saylor has been known for his Sunday posts hinting at Bitcoin purchases, but this week he added a new twist by suggesting the addition of green dots to his chart. This subtle change has sparked speculation within the Bitcoin community about what it could mean for the company.

Some believe that the green dots could signal potential stock buybacks or balance sheet shifts, while others wonder if it may indicate a hint at possible Bitcoin sales. This speculation comes at a time when Strategy CEO Phong Le mentioned in a podcast appearance that the company has no short-term refinancing risk but could sell Bitcoin to fund dividends on its perpetual preferred equity if the company’s multiple to net asset value (mNAV) falls below 1.

It is worth noting that Strategy is the largest publicly traded corporate holder of Bitcoin, with nearly 650,000 BTC in its possession. However, the company has seen its stock price decline significantly in recent months, making it challenging to raise funds for additional Bitcoin purchases through common stock sales. Instead, Strategy has been issuing preferred shares for Bitcoin buys, but concerns have been raised about the company’s ability to pay preferred dividends without diluting common stockholders or selling some of its Bitcoin holdings.

The potential sale of Bitcoin by Strategy for any reason would be significant, especially considering Michael Saylor’s repeated assertion that “You do not sell your Bitcoin.” As the speculation continues to swirl within the Bitcoin community, all eyes will be on Strategy to see how this potential shift in strategy plays out in the coming weeks.