CoinDesk
Jiang Zhuoer, chief executive of Chinese mining pool BTC.TOP, pushed back on a week of speculation that Strategy has been quietly offloading bitcoin, arguing the company's balance sheet is far stronger than the sell-side narrative suggests. Even at $30,000 — roughly half current prices — Strategy's debt would represent only about 10% of its assets, leaving little financial pressure to liquidate holdings.
Why it matters
The speculation was triggered by an on-chain analyst who flagged roughly 45,000 BTC, worth approximately $3 billion, leaving a Fidelity custody wallet between May 28 and June 1, with an implied average sale price near $66,000. Jiang countered that the same wallet holds assets for Fidelity's spot bitcoin and ether ETFs, making any direct link to Strategy an inference, not a confirmed transaction. Strategy did report its first bitcoin sale since 2022 in its latest filing, which sent BTC down nearly 10% over the week to around $63,400.
Market impact
Jiang also defended Strategy's STRC preferred shares, which carry an 11.5% annual dividend paid monthly. His argument: selling older, low-cost BTC to book an accounting profit funds the dividend, while fresh STRC proceeds buy new bitcoin — keeping Strategy a net accumulator as long as purchases outpace sales. Critics in the same discussion warned that a prolonged bear market could swell the interest burden and force larger sales regardless of management intent. For now, BTC trades near $63,400, and the structural case for Strategy's model remains intact — but the debate has exposed the leverage sensitivity the market will keep testing.
Frequently asked questions
-
Why did speculation arise that Strategy sold 45,000 BTC in late May?
An on-chain analyst observed roughly 45,000 BTC leaving a Fidelity custody wallet between May 28 and June 1 at an implied average near $66,000. However, that wallet also holds assets for Fidelity's spot bitcoin and ether ETFs, making a direct link to Strategy an inference rather than a confirmed sale.
-
How does Strategy's STRC preferred share structure allow it to keep buying BTC while paying dividends?
Strategy sells its oldest, lowest-cost bitcoin to book an accounting profit that funds the 11.5% annual STRC dividend, while proceeds from new STRC share issuances are used to purchase fresh bitcoin — keeping the company a net accumulator as long as new purchases exceed sales.
-
At what bitcoin price level would Strategy's debt become a serious concern?
According to Jiang Zhuoer, Strategy's debt currently equals about 5% of its assets and would only rise to roughly 10% even if bitcoin fell to $30,000 from around $62,900, suggesting limited forced-selling pressure at that level.
WatcherGuru
CoinTelegraph
Benjamin Cowen
WuBlockchain
Crypto Capital Venture
CryptoSlate
TheBlock