Real Reason Why Michael Saylor Is Selling Bitcoin

Michael Saylor has finally revealed why Strategy recently sold Bitcoin even though they always promoted the “never sell” idea. Moreover, he outlined the roadmap to buying more BTC than they sell, which signals at a bullish narrative.

Why Did Michael Saylor’s Strategy Sell Bitcoin?

In the first week of June, Strategy reported selling 32 BTC worth $2.5 million. Though the sale was relatively small compared to the company’s humungous $53 billion BTC stash, it led to a negative sentiment in the market.

The MSTR stock plunged as netizens criticized the BTC sale move. However, in a recent interview, Saylor stated that the move was the part of Strategy’s vast credit business model that is backed by Bitcoin.

He responded to those on social media who criticized him for contradicting his famous “never sell your Bitcoin” quote.

“I got very very famous for saying you do not sell your Bitcoin to the plebs,” Saylor said. “The Twitter trolls thought it’s pretty easy to say the most famous guy in the world for saying don’t sell your Bitcoin just sold some Bitcoin.”

Michael Saylor stressed that his recommendations were for retail investors and not for firms involved in big Bitcoin finance companies. He said Strategy is more of a “Bitcoin reserve bank,” that develops credit products with Bitcoin assets.

Selling some Bitcoin is essential to the company’s preferred-stock products and dividend payments, says Saylor. “If people believe that we were unwilling to sell the Bitcoin, then what follows is if you’re not willing to sell the Bitcoin, you can’t pay the dividend,” he said.

He said that Strategy’s business model relies on converting investor Bitcoin profits into cash flow. “We sell a dollar of credit, we buy a dollar of Bitcoin. Bitcoin appreciates in value over time. We pay a portion of the capital appreciation back as a credit dividend,” Saylor explained.

Strategy Eyes Buying More Bitcoin Than They Sell

Saylor also noted that the company has to prove to credit investors and credit rating agencies that it has actual assets in Bitcoin that it can sell over time if necessary. “The only way that the Bitcoin is a tangible asset is if you’re willing to sell it,” he stated.

The Strategy Chairman stated that selling BTC from time to time actually aids the firm over the longer haul to amass additional Bitcoin. A rational approach is useful to the company in raising more funds in equity and credit markets, he said. Along similar lines, the company just acquired another $100 million in Bitcoin on Monday.

“We have become the biggest holder of Bitcoin in the world and we’re the biggest buyer of Bitcoin in the world,” Saylor said. He declared, “And that will continue as long as we act rationally.”

Moreover, Michael Saylor maintained a bullish outlook for BTC price as he expects it to soar to $700,000 and beyond.

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