CoinDesk
Jiang Zhuoer, chief executive of Chinese mining pool BTC.TOP, pushed back on a week of speculation that Strategy has been quietly selling its bitcoin holdings, arguing that the company's balance sheet can absorb a drop to $30,000 without forcing a real liquidation.
Writing on X in Mandarin on Sunday, Jiang estimated Strategy's debt at roughly 5% of its assets, a ratio that would only climb to about 10% even if bitcoin fell to $30,000 from the roughly $62,900 level at the time. He framed the on-chain chatter — that about 45,000 BTC, worth roughly $3 billion, left a Fidelity custody wallet between May 28 and June 1 — as overblown, noting that the same wallet holds assets for Fidelity's spot bitcoin and ether ETFs, so attributing the outflow to Strategy is an inference, not a confirmed sale.
Jiang also defended Strategy's STRC preferred shares, which pay an 11.5% annual dividend in monthly installments. Selling a small slice of the company's oldest, cheapest bitcoin books an accounting gain that funds those payments, he argued, while fresh STRC issuance buys more bitcoin. As long as purchases outpace sales, Strategy remains a net buyer on net.
Why it matters
The defence matters because Strategy is the single largest publicly traded corporate holder of bitcoin, and any forced-sale thesis — even an unconfirmed one — can move spot price and preferred-share spreads in tandem. Jiang's central claim is structural: with debt near 5% of assets, the leverage that historically forced miners and treasuries into selling simply isn't there yet. He also flipped the standard STRC critique, arguing that Strategy's willingness to sell a thin slice of bitcoin to fund dividends actually removes the bigger fear STRC holders had — that the company would refuse to sell and default on the dividend instead.
Market impact
Bitcoin traded near $63,400 on Monday, down nearly 10% on the week after Strategy reported its first bitcoin sale since 2022. Other commentators in the discussion were less sanguine, warning that a prolonged bear market would swell Strategy's interest bill and force larger sales no matter what management intends.
Frequently asked questions
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What is Jiang Zhuoer's main argument about Strategy's balance sheet?
He estimates Strategy's debt is roughly 5% of its assets, and would only climb to about 10% even if bitcoin fell to $30,000 from around $62,900 — too small to force liquidation, in his view.
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Did Strategy actually sell 45,000 bitcoin from the Fidelity wallet?
No confirmed sale. An on-chain analyst estimated roughly 45,000 BTC (~$3B) left a Fidelity custody wallet between May 28 and June 1, but the same wallet also holds assets for Fidelity's spot bitcoin and ether ETFs, so the attribution to Strategy is an inference, not a confirmed transaction.
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How does STRC fund its 11.5% dividend without breaking the never-sell image?
Strategy sells a small slice of its oldest, cheapest bitcoin to book an accounting gain that funds the monthly dividend, while proceeds from new STRC issuance buy fresh bitcoin. Net buyers as long as purchases outpace sales, per Jiang's framing.
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Why do STRC holders worry less about a dividend default now?
Jiang argued the bigger STRC fear was that Strategy would refuse to sell bitcoin and default on the dividend — so the company's willingness to sell a thin slice to fund payments actually removes that specific default overhang, even if it complicates the never-sell narrative.
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What counter-argument do other commentators raise?
Others in the discussion warned that a prolonged bear market would swell Strategy's interest bill and force larger bitcoin sales regardless of management's intent — meaning low debt today does not guarantee low selling pressure in a deeper drawdown.
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