Key Points
- Jiang Zhuoer claims Strategy maintains solvency at $30,000 bitcoin without triggering forced asset liquidation.
- Strategy’s debt represents approximately 5% of total assets at present bitcoin valuations.
- A bitcoin decline to $30,000 would push the debt ratio to around 10%, still within manageable levels.
- Market observers noted 45,000 BTC exited a Fidelity custody address from May 28 through June 1.
- Jiang clarified the wallet contains ETF holdings, making direct Strategy attribution uncertain.
Bitcoin hovered around $63,400 on Monday following recent market turbulence and fresh scrutiny of Strategy’s financial position. Jiang Zhuoer, who leads BTC.TOP, stated Strategy possesses sufficient cushion to endure a decline to $30,000 without mandatory liquidations. He challenged assertions that recent blockchain movements indicate the firm departed from its established accumulation strategy.
Financial Cushion Provides Protection During Bitcoin Declines
Jiang responded to theories suggesting Strategy divested approximately 45,000 Bitcoin during the late May to early June period. A blockchain researcher connected these transfers to a Fidelity custody address, calculating average disposal prices around $66,000. The wallet simultaneously manages Fidelity’s bitcoin and ether exchange-traded fund holdings, leaving the connection inconclusive.
Jiang posted on X that these assertions exaggerated the situation and lacked concrete verification. He noted Strategy‘s outstanding debt amounts to roughly 5% of asset value under current market conditions. He further explained that a bitcoin retreat to $30,000 would elevate the debt proportion to approximately 10%, a level he characterized as sustainable.
He contended Strategy faces minimal incentive to reverse its stated bitcoin holding policy.
“The speculation is overblown,” Jiang declared in Mandarin on Sunday. He stressed that the firm’s asset foundation continues to substantially outweigh its obligations.
Strategy disclosed its first bitcoin disposition since 2022 recently, sparking renewed conversation. Nevertheless, Jiang maintained that balance sheet resilience minimizes incentive to offload substantial positions. He noted that volatility alone does not determine the company’s treasury decisions.
Preferred Share Mechanics and Dividend Payment Strategy
Jiang also tackled questions about STRC, the preferred equity instrument Strategy utilizes for capital generation. These instruments bear an 11.5% annual dividend, distributed through monthly payments. Some analysts wondered whether dividend commitments might compel bitcoin sales during extended downturns.
He explained that disposing of older, lower-cost bitcoin enables Strategy to record accounting gains. These profits can support dividend obligations while preserving the company’s strategic position. He noted that fresh STRC offerings deliver new capital that Strategy can allocate toward further bitcoin acquisitions.
“As long as purchases exceed sales, Strategy remains a net buyer,” Jiang explained. He proposed that demonstrating flexibility around asset management reduces default concerns among STRC investors. According to his view, dividend recipients worried more about inflexible policies than prudent position management.
Other analysts expressed skepticism and cautioned that extended bear markets could amplify interest costs. They suggested persistent depressed prices might compel the company to increase sales beyond current plans. Bitcoin traded near $63,271.85, reflecting nearly 10% decline over the preceding week.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
