Strategy can withstand bitcoin dropping to $30,000 without being forced to liquidate its holdings, according to Jiang Zhuoer, chief executive of BTC.TOP, one of China's largest mining pools. His comments came as the broader market digested the company's first bitcoin sale since 2022 and speculation about whether it would need to tap its reserves further.
Market Context
Bitcoin traded near $63,400 on Monday, according to CoinDesk data, down nearly 10% over the past week following Strategy's disclosure of its bitcoin sale. The move rattled markets already sensitive to signals from major holders, particularly after an on-chain analyst estimated approximately 45,000 bitcoin, valued at roughly $3 billion, left a Fidelity custody wallet between May 28 and June 1.
Analysis
Jiang pushed back against speculation that Strategy had begun unwinding its position. Writing in Mandarin on X (formerly Twitter), he argued the selloff concerns were overblown and centered his thesis on the company's balance sheet resilience. He noted Strategy's debt represents only about 5% of total assets, a ratio that would climb to just 10% even if bitcoin fell from approximately $62,900 to $30,000. That cushion, he suggested, buys management time and flexibility without forcing capitulation.
The CEO also defended the mechanics behind STRC, Strategy's preferred shares that carry an 11.5% annual dividend paid in monthly installments. His framework: selling bitcoin purchased at lower prices generates accounting profits that cover those dividend obligations, while proceeds from new STRC issuances fund fresh accumulations. As long as purchase volume exceeds liquidation volume, Strategy remains a net buyer, preserving its identity as the corporate bitcoin accumulator.
Not everyone found the argument persuasive. Critics contend that an extended bear market would compound interest expenses and eventually force larger dispositions regardless of management's stated preferences. The tension between maintaining the never-sell narrative and meeting financial obligations presents an ongoing storyline for market participants tracking Strategy's treasury strategy.
Key Numbers
- $63,400: Bitcoin price near press time Monday per CoinDesk data
- ~$3 billion: Estimated value of 45,000 bitcoin that left a Fidelity custody wallet between May 28-June 1
- ~$66,000: Average estimated sale price for coins tied to Strategy activity
- 5%: Current debt-to-assets ratio cited by Jiang
- 10%: Projected debt-to-assets ratio if bitcoin falls to $30,000
- 11.5%: Annual dividend rate on STRC preferred shares, paid monthly
What to Watch
Traders should monitor whether Strategy resumes purchasing activity in the coming weeks and how market participants react to any further disclosures around custody wallet movements. The interplay between STRC issuance volumes, bitcoin price action, and the company's stated accumulation cadence will likely drive sentiment around MSTR and related instruments. Key support levels near $60,000 and resistance at recent highs above $70,000 remain focal points for positioning.