Strategy Can Survive a $30,000 Bitcoin Price Without Major BTC Sales, Says BTC.TOP CEO

Strategy could continue buying and holding Bitcoin even if the cryptocurrency falls to $30,000, according to Jiang Zhuoer, CEO of BTC.TOP, one of China’s largest Bitcoin mining pools. Jiang pushed back against recent speculation that Strategy may have sold a large amount of Bitcoin to meet financial obligations.

The debate began after an on-chain analyst claimed that around 45,000 BTC, worth nearly $3 billion, left a Fidelity custody wallet between May 28 and June 1. He suggested the coins were sold at an average price of about $66,000. However, Jiang argued that the conclusion is not confirmed because the same wallet also stores assets for Fidelity’s Bitcoin and Ether ETFs.

Low Debt Levels Reduce Pressure to Sell Bitcoin

Jiang said Strategy’s balance sheet remains strong. According to him, the company’s debt equals roughly 5% of its assets and would rise to only about 10% even if Bitcoin dropped from around $62,900 to $30,000. Because of this relatively low leverage, he believes there is little reason for Strategy to damage its long-standing image as a company committed to holding Bitcoin.

STRC Preferred Shares Explained

Jiang also defended Strategy’s STRC preferred shares, which offer an 11.5% annual dividend paid monthly. He explained that selling older and lower-cost Bitcoin can generate accounting profits to help cover dividend payments, while funds raised through new STRC sales can be used to buy additional Bitcoin.

As long as Bitcoin purchases remain higher than sales, Strategy would continue to be a net buyer. Jiang added that showing a willingness to sell a small amount of Bitcoin could reassure STRC investors who worry about potential dividend defaults.

Some Analysts Remain Cautious

Not everyone agrees with Jiang’s outlook. Some market participants argue that a prolonged bear market could increase Strategy’s financing costs and eventually force larger Bitcoin sales. Bitcoin was trading near $63,400 on Monday and had fallen almost 10% over the previous week following Strategy’s first reported Bitcoin sale since 2022.