Strategy's CEO Phong Le warned Friday that the company might sell up to $5 billion in bitcoin, a sharp jump from the $1.25 billion figure it had previously cited, as the firm marks its fifth straight week without a BTC purchase. Le's shift toward a new preferred-stock price target has drawn sharp criticism from analysts, with Peter Schiff warning shareholders are losing out and Crypto Kaleo saying Strategy is drifting from its Bitcoin-first identity.
During Friday's earnings call, Strategy hinted it may sell up to $5 billion in bitcoin, sharply higher than the $1.25 billion figure it had previously cited. The disclosure lands as the firm has gone five consecutive weeks without buying BTC, its longest acquisition pause in years.
Bitcoin Buying Pauses as Cash Reserves Grow
Instead of deploying capital into bitcoin, Strategy has been building its cash reserve through recent fundraising, while continuing to explore financial options tied to its expanding preferred stock offerings. The company's total holdings currently stand at 843,775 BTC, built up since it adopted bitcoin as a treasury asset six years ago and accelerated purchases after the 2024 US presidential election.
STRC Replaces Bitcoin as Top Priority
CEO Phong Le posted on X that Strategy's corporate objective is now for STRC, its preferred stock, to trade at $99 to $100 over time. On the earnings call, he said the sales would fund the U.S. dollar reserve up to $1.25 billion, cover dividend and interest payments of $1.76 billion a year, and finance up to $2 billion in stock repurchases.
Peter Schiff, a frequent critic, responded on X: "In other words, common shareholders are screwed." Analyst Crypto Kaleo went further, arguing the firm has shifted from a bitcoin-per-share objective to defending its preferred-stock price in just two months, and that it now functions as a credit company rather than a bitcoin holding company. Reactions split: some said Strategy increasingly resembles a leveraged financial company rather than a straightforward bitcoin holder, while others countered that maintaining confidence in STRC is essential for Strategy to keep raising capital for future purchases.
Why STRC's Price Matters
STRC needs to trade at its $100 par value to function properly, and it has fallen short for months. The preferred stock dropped below $75 at one point. It has since recovered to almost $90 as Strategy shifted its focus toward rebuilding cash. Some investors view Le's comments as a short-term tactical move rather than a sign Strategy has abandoned its bitcoin-focused strategy, though the timing has fueled questions about the firm's evolving identity amid ongoing market uncertainty.
Source: CryptoPotato
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