BitWise’s CIO says Strategy holds enough cash to cover near-term needs and faces no forced Bitcoin sales amid market dip and index worries.   Strategy continues to draw attention after a rough month in the market.  Talk about forced Bitcoin sales has grown louder, yet several facts show that the company sits on firm ground.  […] The post Saylor’s Strategy Won’t Be Forced To Sell Bitcoin, Even In Bad Times, BitWise CIO Says appeared first on Live Bitcoin News.BitWise’s CIO says Strategy holds enough cash to cover near-term needs and faces no forced Bitcoin sales amid market dip and index worries.   Strategy continues to draw attention after a rough month in the market.  Talk about forced Bitcoin sales has grown louder, yet several facts show that the company sits on firm ground.  […] The post Saylor’s Strategy Won’t Be Forced To Sell Bitcoin, Even In Bad Times, BitWise CIO Says appeared first on Live Bitcoin News.

Saylor’s Strategy Won’t Be Forced To Sell Bitcoin, Even In Bad Times, BitWise CIO Says

2025/12/05 22:45

BitWise’s CIO says Strategy holds enough cash to cover near-term needs and faces no forced Bitcoin sales amid market dip and index worries.

Strategy continues to draw attention after a rough month in the market. 

Talk about forced Bitcoin sales has grown louder, yet several facts show that the company sits on firm ground. 

The firm holds a large reserve, has no near-term debt deadlines and a cost basis far below the current Bitcoin price. 

Strategy Bitcoin Position Sparks Debate

Strategy holds more Bitcoin than any other public company. Its approach started in 2020 and grew into a long-running plan that set a new model for corporate investing. 

The firm has also spent over 48 billion dollars and built a stash of around 650,000 Bitcoin. That amount makes up over 3% of all Bitcoin that will ever exist. Because of this, many traders watch the stock because its value often reacts to Bitcoin changes.

Matt Hougan of Bitwise addressed the rising doubts in a recent note. He said that talk about forced selling came from a misunderstanding of how the firm operates. He pointed to the company’s leadership, long-term plan and strong balance sheet. 

His message was clear. Strategy does not face rules or deadlines that would push it toward a large sale.

Hougan said that fears rose after comments from CEO Phong Le. 

Le mentioned a last resort plan during a recent interview. He said the firm could sell some Bitcoin only if its market value dropped below the value of its holdings and if the company lost access to funding. 

He did not say such a move was likely. However, the market still reacted because traders fear any large sale from such a major holder.

How Strategy Uses Its Bitcoin Strategy

Strategy built reserves to handle tough markets. The company currently holds $1.4 billion in cash. 

The figure comes from recent at-the-market stock sales. Those funds allow Strategy to handle interest payments and other near-term needs. Hougan said the company pays about $800 million per year in interest. 

This reserve gives the firm breathing room for at least a year and a half.

He also noted that the firm does not face debt deadlines until 2027. This gives Strategy time to plan, raise funds or refinance if needed. Hougan said this structure makes forced selling very unlikely. 

That view gained strength because Bitcoin trades above the company’s average cost of $74,436. Hougan said this gap shows the holdings still sit in profit even after the recent dip.

Saylor has used debt to load up on Bitcoin over the last 5 yearsSaylor has used debt to load up on Bitcoin over the last 5 years | source- Saylor Tracker

Market pressure matters because the stock dropped more than 24% over the last month. Because of this, some traders worry that a removal from MSCI indices could add stress. 

The index provider said it could remove companies that hold more than half of their balance sheets in crypto. Notably, Strategy fits that description because most of its assets are tied to Bitcoin.

However, Hougan said the effect of index changes is often smaller than people think. 

Related Reading: Strategy’s Bitcoin Buys Have Slowed Down Amid Bear Market Jitters

Bitcoin Volatility Creates Extra Stress

Bitcoin fell from a record above $120,000 to as low as $82,000 recently. The price has since moved back above $92,000, and these swings weighed on traders who hold Strategy shares. 

Many assume the stock mirrors Bitcoin and sometimes it follows the price. Other times it lags because of company-specific issues. However, the recent dip lined up with wider fears about crypto holdings inside public companies.

Some critics say the heavy use of leverage puts the firm at risk. Strategy borrowed large sums over several years to grow its holdings. That helped the firm load up when prices sat lower. 

Hougan said the concern over these loans is overstated. The company has sufficient cash to cover interest payments and does not face a near-term cliff.

Meanwhile, market watchers debate how Strategy should handle a long slump. Some say the firm should sell a small slice to build a larger cushion. Others argue that the company should stick to its long-stated plan and ride out the storm. 

Co founder Michael Saylor defended the strategy during recent calls. He said he believes Bitcoin will grow over long periods and expects the company to benefit in the long run.

The post Saylor’s Strategy Won’t Be Forced To Sell Bitcoin, Even In Bad Times, BitWise CIO Says appeared first on Live Bitcoin News.

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