Jiang Zhuoer, CEO of BTC.TOP, dismissed concerns over the recent market selloff as exaggerated, arguing that Strategy’s relatively low debt levels and the structure of its preferred shares still allow it to continue accumulating Bitcoin.
In comments shared on X, the head of one of China’s largest Bitcoin mining pools pushed back against speculation that Strategy had been forced to sell BTC to meet financial obligations, saying the company is unlikely to meaningfully liquidate its holdings.
The speculation intensified after an on-chain analyst reported that around 45,000 BTC—valued at roughly $3 billion—moved out of a Fidelity custody wallet between May 28 and June 1, suggesting Strategy may have gradually sold coins at an average price near $66,000. However, since the same wallet also holds Fidelity’s Bitcoin and Ethereum ETF assets, the attribution to Strategy remains unconfirmed and based on inference rather than direct evidence.
Writing in Mandarin on Sunday, Jiang said the market reaction was overstated and not supported by fundamentals.
He pointed to Strategy’s balance sheet strength, noting that the company’s debt accounts for only about 5% of total assets and would still be just around 10% even if Bitcoin dropped sharply to $30,000 from current levels near $62,900. In his view, this financial cushion reduces the likelihood that Strategy would abandon its long-standing “never sell Bitcoin” stance, which is central to its investment narrative.
Jiang also defended Strategy’s use of STRC preferred shares, which carry an 11.5% annual dividend paid monthly. He argued that selling older, lower-cost Bitcoin allows the company to realize accounting gains that can help fund dividend obligations, while proceeds from issuing new STRC shares are used to purchase additional BTC.
As long as Bitcoin acquisitions exceed any sales, he said, Strategy remains a net buyer overall. He also suggested that allowing for selective BTC sales could actually ease investor concerns, since STRC holders’ primary fear is that the company might refuse to sell Bitcoin entirely and risk defaulting on dividends.
However, some market participants remain skeptical, warning that a prolonged bear market could increase interest expenses and eventually force larger Bitcoin sales regardless of management’s intentions.
At the time of reporting, Bitcoin was trading around $63,400, down nearly 10% over the past week, following Strategy’s first reported Bitcoin sale since 2022.
