Bitwise CIO: Large-scale BTC sale by MicroStrategy is unlikely

Bitwise Chief Investment Officer (CIO) Matt Hougan has stated that MicroStrategy (MSTR) is unlikely to engage in a large-scale sell-off of its Bitcoin holdings. He noted that the company holds approximately $49.6 billion in BTC and $2.6 billion in cash, compared to a total debt of about $6.8 billion. In his analysis, this financial position provides MicroStrategy with enough capacity to cover its preferred stock dividends for an extended period using its existing assets alone. Hougan added that while the company's new capital management framework allows for the sale of some BTC to pay dividends and interest if necessary, it does not compel multi-billion dollar sales annually. He also pointed out that in an extreme scenario, the company could temporarily suspend its preferred stock dividends, limiting the possibility of a large forced sale. Hougan suggested that if Bitcoin enters a bull market, MicroStrategy is likely to return to a net buying position.