Chinese Mining CEO Says Strategy Can Withstand $30K BTC

TLDR

• Jiang Zhuoer said Strategy can withstand a $30,000 bitcoin price without forced large-scale sales.
• He stated that Strategy’s debt equals about 5% of its assets at current bitcoin levels.
• He added that the debt ratio would rise to roughly 10% if bitcoin falls to $30,000.
• Speculation grew after 45,000 BTC left a Fidelity custody wallet between May 28 and June 1.
• Jiang said the wallet also holds ETF assets, so linking the outflows to Strategy remains unconfirmed.

Bitcoin traded near $63,400 on Monday after recent volatility and renewed debate over Strategy’s balance sheet. Jiang Zhuoer, chief executive of BTC.TOP said Strategy could withstand a drop to $30,000 without forced sales. He rejected claims that recent wallet outflows prove the company abandoned its long-held accumulation approach.

Strategy Balance Sheet Seen as Buffer Against Bitcoin Drop

Jiang addressed speculation that Strategy sold about 45,000 Bitcoin between May 28 and June 1. An on-chain analyst linked the outflows to a Fidelity custody wallet and estimated average sales near $66,000. However, that wallet also holds Fidelity’s bitcoin and ether exchange-traded funds, so the link remains unconfirmed.

Jiang wrote on X that the claims were overstated and lacked proof. He said Strategy’s debt equals roughly 5% of its assets at current prices. He added that even if bitcoin falls to $30,000, the debt ratio would rise to about 10%, which he described as manageable.

He argued that Strategy has little reason to break its public commitment to holding bitcoin.

Strategy recently reported its first bitcoin sale since 2022, which fueled the discussion. Still, Jiang said balance sheet strength limits pressure to liquidate large holdings. He emphasized that price swings alone do not dictate the company’s treasury actions.

STRC Structure and Dividend Funding Explained

Jiang also addressed concerns surrounding STRC, the preferred shares Strategy issues to raise capital. The shares carry an 11.5% annual dividend, paid in monthly installments. Some market participants questioned whether dividend obligations could force bitcoin sales during a downturn.

He argued that selling older and lower-cost bitcoin allows Strategy to book accounting profits. Those gains can help fund dividend payments without undermining its overall position. He added that new STRC issuance brings fresh capital that the company can deploy into additional bitcoin purchases.

“As long as purchases exceed sales, Strategy remains a net buyer,” Jiang said. He suggested that signaling willingness to sell reduces default fears among STRC holders. According to him, dividend investors feared a rigid no-sale policy more than controlled asset management.

Other commentators disagreed and warned that a prolonged bear market could raise interest expenses. They argued that sustained low prices might pressure the company to expand sales beyond management’s intentions. Bitcoin last traded near $63,271.85, down almost 10% over the past week.

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