Strategy Defends Right to Sell Bitcoin to Back Digital Credit
Michael Saylor told attendees that Strategy sold 32 BTC, its first sale since 2022, to preserve the option to sell Bitcoin to back dividend-paying and Bitcoin-backed credit products.
Strategy disclosed in a June 1 filing with the U.S. Securities and Exchange Commission that it sold 32 BTC, the company’s first reported Bitcoin sale since 2022. Speaking at the BTC Prague conference, Michael Saylor said retaining the ability to sell is needed to support the firm’s dividend-paying and Bitcoin-backed credit products.
Saylor described those products as “digital credit,” instruments that use Strategy’s Bitcoin balance sheet to support credit obligations. He said a policy banning sales would remove value from the credit instruments and from equity. “If the company’s policy is that we won’t sell the Bitcoin, then the credit won’t have value and the equity won’t have value,” he said.
Saylor pointed to STRC, a preferred stock the company issues to raise capital for further Bitcoin purchases, as an example of a security that relies on the option to sell. He characterized STRC and similar securities as ways to create yield-bearing products anchored to the company’s Bitcoin holdings and called digital credit a potential large growth area for Bitcoin finance. He said such products can offer yields of up to about 8%.
Events in early June tested that model. On June 4, Apyx Finance’s dividend-backed synthetic stablecoin apxUSD traded as low as $0.90 after Bitcoin fell below $63,000 and STRC shares dipped under their $100 par value. Apyx said the decline in STRC, which it used as primary collateral, reduced the protocol’s reserve value and cited falling Bitcoin prices, thin liquidity and derivative-driven market dynamics. apxUSD was trading around $0.96 at the time of reporting.
According to Saylor, occasional sales are intended to maintain functioning markets for securities tied to Strategy’s Bitcoin treasury and not to signal a change in the company’s broader accumulation policy. He described allowing companies to monetize Bitcoin via credit products as a way to channel capital into Bitcoin-backed markets.
The company’s filing and recent market moves illustrate how Bitcoin price swings and the performance of related securities can affect credit products that use corporate-held Bitcoin as collateral.
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