Is the strategy of selling Bitcoin not a bearish signal? Analyzing the five financial logical reasons behind companies reducing their Bitcoin holdings.

Translated by: Saoirse, Foresight News

Recently, Strategy Company announced that it might sell part of its Bitcoin to achieve business goals, which has caused an uproar in the market. This company has previously maintained a firm stance of never selling Bitcoin, with Saylor even jokingly posting that even selling assets would not involve disposing of Bitcoin.

In fact, for companies holding Bitcoin reserves, selling Bitcoin has always been an alternative business strategy. "Never selling" is merely a reflection of a long-term investment philosophy, aligning with the general long-term investment thinking prevalent in the crypto space. Even though the market generally advocates for holding Bitcoin, selling Bitcoin remains a reasonable choice in many scenarios.

On a personal level, selling Bitcoin is often used to improve living conditions, such as purchasing real estate, traveling, funding children's education, or dealing with large unexpected medical expenses. The core purpose of all business decisions is to enhance shareholder equity.

In the first quarter of 2026, Bitcoin miners sold a total of 25,376 Bitcoins, using the proceeds to transition to artificial intelligence business. Management determined that the risk-reward ratio for AI projects was higher than holding Bitcoin. This leads to the fundamental logic: when higher-return investment opportunities exist, selling Bitcoin for asset exchange becomes reasonable. For companies like Strategy that hold Bitcoin, selling Bitcoin 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 goal of the company's reserve asset operation; an increase in this metric indicates Bitcoin yield. The usual method is to purchase Bitcoin to increase the total holdings, while share buybacks can reduce the circulating stock, both of which can raise the per-share holding value.

If the company's stock price is below the corresponding value of its Bitcoin assets, selling Bitcoin to repurchase shares will ultimately enhance the per-share Bitcoin holdings; the decrease in Bitcoin holdings will be less than the reduction in equity. When a company’s operational cash flow cannot cover fixed expenses like preferred stock dividends and bond interest, and the stock is undervalued, selling Bitcoin to pay off debts can minimize the reduction in per-share Bitcoin holdings.

Reason Two: Optimize Capital Structure, Reduce Financing Costs

Rating agencies significantly influence the flow of funds in the capital market; adhering to their rating rules can help companies secure financing smoothly. Previous relevant reports have analyzed feasible ways to enhance credit ratings, and a good rating can effectively lower a company’s financing costs.

S&P ratings recognize the value of cash reserves, prompting Strategy to adopt this approach. By January 2026, the company’s cash reserves reached $2.2 billion, greatly alleviating investors’ concerns about the company’s ability to pay preferred stock dividends.

The company can sell Bitcoin to supplement its cash reserves, aligning with capital market requirements, and consequently issue bonds at a lower cost for financing. Additionally, selling Bitcoin to repay debts can reduce prioritized liabilities and increase the attractiveness of preferred stock financing.

In the long run, differences in financing rates can widen yield gaps through compounding effects, and low-cost liabilities can relieve operational burdens and increase revenues.

Reason Three: Legal Tax Planning

Currently, there are no restrictions on Bitcoin wash sale transactions in the United States; companies can sell Bitcoin for accounting losses and immediately repurchase to lower the tax cost basis, thereby offsetting tax liabilities. Strategy utilized this operation back in 2022 during the market’s low point.

This tax benefit is still effective today; companies can combine loss-offsetting tax policies while simultaneously conducting stock buybacks and debt repayments to achieve multiple gains.

Reason Four: Break Down Negative Market Reputation

The Bitcoin industry has a relatively short development history, and various negative rumors are rampant. Some false statements claim that if Strategy sells Bitcoin, it will directly impact the entire crypto market and overturn the company’s Bitcoin-holding operation model.

If the company sells 50,000 Bitcoins and there is no significant fluctuation in market price or its own stock price, it can dispel rumors, allowing the capital market to accept the business model of holding Bitcoin assets.

The market itself has self-regulating capabilities, and those creating hype are often media and self-media individuals; professional investment institutions make decisions based on actual research and are not swayed by one-sided comments. This is also the most subjective of the five reasons.

Reason Five: Discounted Buyback of Preferred Shares

This business strategy is not often mentioned; when the prices of floating-rate financial products deviate significantly from par value, companies can buy back products at prices far below par, settling high liabilities.

This operation is equivalent to closing their preferred stock short position without interest or borrowing costs. For example, with the STRC product, issued at a par value of $100, if the price drops to $82, the company can sell Bitcoin to fund the low-price buyback of shares, earning an $18 difference per share, and this revenue is tax-free.

Price trend of STRC since its initial public offering

A drop in preferred share prices does not necessarily coincide with a crash in Bitcoin prices; leveraged trading can easily trigger chain sell-offs. Companies can take advantage of low prices to repurchase shares, avoiding capital loss from subsequent dividend increases.

Conclusion

The sale of Bitcoin by companies should not be viewed as a bearish action; in many scenarios, selling Bitcoin can protect the legitimate interests of the company and its shareholders. Bitcoin has monetary attributes and can provide companies with flexible funding allocation space; reasonable use of assets is essential to maximize their value.

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