BTC.TOP CEO Claims Strategy Can Weather Bitcoin Drop Without Selling
Chinese mining CEO says Strategy can survive a $30,000 bitcoin without selling
Image: Coindesk
Jiang Zhuoer, CEO of BTC.TOP, asserts that Strategy can sustain a drop in Bitcoin to $30,000 without needing to sell its holdings. He argues that speculation about a significant sale of Bitcoin is exaggerated, citing the company's low debt levels and the structure of its preferred shares as key factors in maintaining its investment strategy.
- 01Jiang Zhuoer stated that even if Bitcoin drops to $30,000, Strategy's debt would only increase to 10% of its assets.
- 02Speculation that Strategy sold 45,000 Bitcoin from a Fidelity wallet is deemed overblown, as the wallet also contains assets for Fidelity's ETFs.
- 03Strategy's preferred shares, STRC, pay an 11.5% annual dividend, allowing the company to remain a net buyer of Bitcoin.
- 04Jiang emphasized that selling older Bitcoin can fund dividend payments while still acquiring new Bitcoin.
- 05Concerns remain that a prolonged bear market could force Strategy into larger sales regardless of management's intentions.
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Jiang Zhuoer, the CEO of BTC.TOP, one of China's largest Bitcoin mining pools, has asserted that his company, Strategy, can withstand a potential drop in Bitcoin prices to $30,000 without needing to sell its holdings. Jiang argues that the recent speculation regarding Strategy's alleged sale of approximately 45,000 Bitcoin, worth around $3 billion, is exaggerated. He highlighted that Strategy's debt constitutes only about 5% of its assets, which would only rise to 10% in the event of a significant price drop. Furthermore, he defended the company's strategy of utilizing high-yield STRC preferred shares, which pay an 11.5% annual dividend. This structure allows Strategy to continue buying Bitcoin while making limited sales to fund dividends. Despite these reassurances, some analysts caution that a prolonged bear market could necessitate larger sales, contradicting the company's long-standing policy of not selling Bitcoin. Currently, Bitcoin is trading around $63,400, having experienced a nearly 10% decline over the past week.
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The stability of Strategy's investment approach could influence market confidence in Bitcoin mining operations.
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