marketwatch.com - Bitcoins slumping again the biggest corporate owner admits it may have to sell if things get worse

Bitcoin's movements seem to follow equities from the standpoint of direction, but I suspect margin is increasing the amplitude of the swings.

The top executive at bitcoin’s biggest corporate owner has laid out the parameters that would force his company to sell some of its $56 billion worth of the cryptocurrency.

Phong Le, CEO of Strategy at MSTR said bitcoin would be sold if if the company’s multiple to net asset value (mNAV) — a valuation metric that divides the company’s market capitalization by the market value of the Bitcoin it holds — fell below 1.

“So now, as we’re looking at bitcoin winter, as we see our mNAV compressing, my hope is our mNAV doesn’t go below one. But if we did and we didn’t have other access to capital, we would sell bitcoin,” he told a podcast interview that published Friday. “That would be a last resort.”

The mNAV for the company formerly known as MicroStrategy, whose share are down 38% this year, currently stands at 1.19, but reached as high as 2.5 times in 2024 and around 1.7 times in June. An mNAV above 1 means Strategy trades at a premium to its bitcoin holdings.

Le said he remains optimistic on bitcoin going forward, saying that as long as bitcoin can double the performance of the S&P 500 , gaining say 30% a year on the index’s 14%, then “we’re going to win.”

“I think for the foreseeable future, we’re still talking 50% to 40% annualized returns over a four- to five-year period,” he said. “It’s an amazing technology, it has an amazing store value asset, it’s non-sovereign, it has a limited supply.”

Jeff