Strategy CEO Phong Le confirmed the company would consider selling Bitcoin only under specific financial conditions. Le told the What Bitcoin Did podcast that sales would occur if the stock falls below net asset value and financing options disappear. The company faces annual dividend obligations between $750 million and $800 million from recently issued preferred shares. Le described potential Bitcoin sales as mathematically justified to protect Bitcoin yield per share. He added that financial discipline must override emotion during hostile market conditions.
Financial Pressure Mounts on Treasury Model
Strategy currently holds 649,870 Bitcoin at an average purchase price of $74,430 per coin. The company's market-to-net-asset-value ratio dropped to 0.87 in November 2025. This means investors pay roughly 80 cents for every dollar of Bitcoin the company owns. This represents the first time Strategy traded below 1.0 mNAV since beginning Bitcoin purchases in August 2020.
The business model depends on issuing stock at a premium to buy more Bitcoin. When that premium vanishes, new equity issuance becomes dilutive rather than accretive. Strategy raised approximately $20 billion in the first nine months of 2025 through convertibles, preferred stock, and at-the-market equity offerings. Preferred dividend costs climbed as STRC shares increased their dividend from 9% in July to 10.5% in November. New preferred offerings carry coupons above 10% with penalty rates reaching 18% if unpaid.
Treasury Sector Faces Widespread Premium Collapse
Twenty-five percent of public Bitcoin treasury firms traded below the value of their holdings as of September 2025. Companies that commanded premiums between 200% and 700% above Bitcoin's value saw those multiples compress to just 4% by late 2025. The collapse affected the entire sector as investors became unwilling to pay premiums for leveraged Bitcoin exposure.
Competition from dozens of treasury companies and spot Bitcoin ETFs eroded Strategy's first-mover advantage. Traditional institutions now offer direct Bitcoin exposure without the complexity of corporate treasury strategies. Strategy purchased just 487 Bitcoin between November 3 and 9 for $49.9 million. This represents one of the smallest weekly additions since early November. Japanese competitor Metaplanet secured a $100 million loan backed by Bitcoin holdings instead of diluting shareholders through equity raises.
The compressed valuations threaten the entire treasury company sector's ability to continue accumulating Bitcoin. Without premiums, firms cannot issue stock to fund purchases without diluting existing shareholders. Average daily purchases by treasury firms fell to the lowest level since May 2025. Index exclusion risks add pressure as JPMorgan estimates potential passive outflows of $2.8 billion if major providers remove Strategy from benchmarks. Lower premiums reduce equity issuance viability and complicate refinancing as convertible notes mature.