Samson Mow recently made significant comments regarding Strategy’s potential decision to sell Bitcoin if required.
Mow expressed that it is “not a bad thing” for a company holding Bitcoin in its treasury to consider selling $BTC when circumstances demand, emphasizing that the primary objective should be to safeguard shareholders and maintain flexibility within the organization.
He further explained that adhering strictly to a “never sell Bitcoin” philosophy can limit a company’s strategic options. Mow characterized public markets as akin to a “battlefield,” asserting that companies rigidly following one strategy might inadvertently create opportunities for short-sellers and arbitrageurs. He contended that Strategy’s capability to employ various strategies—such as selling, hedging, or issuing new shares—when necessary enhances its resilience against market pressures.
Mow also reminisced about his earlier concept of a Bitcoin bond model which included provisions for planned $BTC sales. He clarified that after an initial five-year lock-in period, the issuer would liquidate some $BTC, thereby providing investors with returns on their capital. According to Mow, Strategy’s STRC structure operates under similar principles, suggesting both models mitigate Bitcoin volatility while still offering growth potential for investors.
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Diving deeper into his insights, Mow referenced previous remarks by Michael Saylor who noted in April that dividends could be sustained without issuing additional MSTR shares as long as Bitcoin’s annual growth remains above approximately 2.05%. This statement implied that $BTC could indeed be sold if needed to facilitate dividend payments.
Mow concluded by stating that while the adage “Don’t sell your Bitcoin” serves as general advice for individual investors, it does not imply an absolute prohibition against selling until death. He articulated how $BTC can fulfill essential life needs and argued strongly in favor of allowing treasury companies the option to divest when necessary.
*This is not investment advice.
FAQ
- What did Samson Mow say about selling Bitcoin?
Mow stated it’s acceptable for companies holding Bitcoin in their treasury to sell it when circumstances require protection of shareholders and flexibility within operations. - Why does he believe ‘never sell’ restricts options?
Mow believes this mindset limits strategic maneuverability and can create vulnerabilities against market forces like short-sellers and arbitrageurs. - What was mentioned about Michael Saylor’s statements?
Saylor indicated dividends could be met without issuing new shares if BTC growth stays above 2.05%, implying BTC sales might fund these payments if needed. - If I own BTC personally should I never sell?
The guideline “Don’t sell your BTC” is generally aimed at individual investors but doesn’t mean you can’t use it when necessary; it’s important contextually based on personal needs or situations. - This article provides investment advice?
No, this article explicitly states it is not investment advice at the end of the content.