Jump out of the mentality of holding coins and analyze the flexible operation strategies of assets.

Written by: Allard Peng

Translated by: Saoirse, Foresight News

Recently, Strategy Company announced that it might sell some Bitcoin to achieve its business goals, which caused an uproar in the market. The company had previously maintained a firm stance of never selling coins, and Saylor even joked in a post that even selling assets would not mean selling Bitcoin.

In fact, for companies holding Bitcoin reserves, selling coins is already an alternative business strategy. "Never sell" is merely a reflection of the long-term investment philosophy, aligning with the long-term investment thinking prevalent in the cryptocurrency field. Even though the market generally advocates for holding coins, in many scenarios, selling Bitcoin is still a reasonable choice.

On an individual level, selling coins is often used to improve quality of life, such as purchasing real estate, traveling, funding children's education, or coping with large unexpected medical expenses. For companies, the core purpose of all operational decisions is to enhance shareholder equity.

In the first quarter of 2026, Bitcoin miners sold a total of 25,376 Bitcoins, whose proceeds were used to transition to artificial intelligence business. The company's management determined that the risk-reward ratio of the artificial intelligence project was higher than that of holding Bitcoin. This gives rise to a basic logic: when there are investment targets with higher returns, selling Bitcoin to exchange for assets makes sense. For companies like Strategy that hold coins, selling coins can also create actual value, which can be categorized into five main reasons.

Reason One: Increase Bitcoin Holdings per Share

The amount of Bitcoin held per share is the core objective of a company's reserve asset operations, and growth in this metric during a period indicates Bitcoin's yield. The conventional method is to buy more Bitcoin to increase the total holding, and a company can also reduce its circulating capital by repurchasing stocks, both of which can boost the per-share holding value.

If the company's stock price is below its corresponding Bitcoin asset value, selling Bitcoin to repurchase stocks will ultimately increase the Bitcoin holdings per share, with the decline in Bitcoin holdings being less than the reduction in capital. When the company's operating cash flow cannot cover fixed expenses such as preferred stock dividends and bond interest, and the stock price is undervalued, selling Bitcoin to pay off debts can minimize the shrinking of Bitcoin holdings per share.

Reason Two: Optimize Capital Structure and Reduce Financing Costs

Rating agencies profoundly influence the flow of capital in the market, and adhering to their evaluation rules can assist companies in successfully obtaining financing. Previous related reports analyzed feasible ways to improve credit ratings, where good ratings can effectively lower corporate financing costs.

S&P ratings recognize the value of cash reserves, and Strategy promptly adopted this approach. As of January 2026, the company's cash reserves grew to $2.2 billion, significantly alleviating investors' concerns about the company's ability to pay preferred stock dividends.

Companies can sell Bitcoin to replenish cash reserves, meeting capital market requirements, and thus issue bonds at a lower cost. At the same time, selling Bitcoin to repay debts can reduce priority liabilities and enhance the appeal of financing through preferred stock.

In the long run, the gap in financing rates can widen the return differences through compounding effects, where low-cost liabilities can reduce burdens and increase income for the company's operations.

Reason Three: Legal Tax Planning

Currently, there are no restrictions on Bitcoin wash trading in the United States; companies can sell Bitcoin to incur book losses, then repurchase it to lower the tax basis of the assets, thereby offsetting taxes. Strategy had utilized this operation during the market trough in 2022.

This tax advantage is still effective, enabling companies to combine loss-offsetting tax policies while simultaneously conducting stock repurchases and debt repayments to achieve multiple benefits.

Reason Four: Break Market Negative Narratives

The development of the Bitcoin industry has been relatively short, and various negative rumors have emerged. Some false claims assert that if Strategy sells Bitcoin, it will directly impact the entire crypto market and overturn the company's coin-holding operational model.

If the company sells 50,000 Bitcoins and the market price and its own stock price do not experience severe fluctuations, it can dispel rumors, allowing the capital market to accept the business model involving Bitcoin asset allocation.

The market itself has a self-regulating ability, and those who deliberately create hype are mostly media and self-media practitioners; professional investment institutions base decisions on actual research and are not swayed by one-sided statements. This is also the most subjective of the five reasons.

Reason Five: Discounted Repurchase of Preferred Shares

This business strategy is rarely mentioned; when the prices of floating-rate financial products deviate significantly from face value, companies can repurchase the products at a price far below par to settle high liabilities.

This operation is akin to closing short positions on their own preferred stock without interest or borrowing costs. Taking the STRC product as an example, with a par value of $100, if the price drops to $82, the company can use proceeds from selling Bitcoin to repurchase shares at a lower price, earning an $18 difference per share, and this income is tax-free.

Price trend of STRC since its initial public offering

A decline in preferred stock prices does not necessarily coincide with a plummet in Bitcoin prices; leveraged trading can easily trigger a chain of sell-offs. Companies can take advantage of low prices to repurchase shares, preventing subsequent increases in dividends from draining funds.

Conclusion

The sale of Bitcoin by a company should not be viewed as a bearish action; in many scenarios, selling coins can safeguard the interests of the company and its shareholders. Bitcoin possesses currency properties and can provide companies with flexible fund allocation space; rational use of assets is essential to maximize their value.