BTC.TOP CEO States Strategy Can Endure $30,000 Bitcoin Without Selling

Jiang Zhuoer, the CEO of BTC.TOP, one of China's largest Bitcoin mining pools, asserts that Strategy can survive even if Bitcoin's price drops to $30,000. He argues that the company's financial health, characterized by low leverage and a manageable debt-to-asset ratio, allows it to maintain its Bitcoin holdings without needing to sell.

Jiang's remarks responded to recent concerns sparked by speculation around the sale of approximately 45,000 Bitcoin from a Fidelity custody wallet, which some sources linked to Strategy. This speculation emerged after an on-chain analyst estimated these coins could represent a loss of around $3 billion if sold off gradually at an average price around $66,000. However, Jiang emphasized that this wallet also supports Fidelity's exchange-traded funds (ETFs), suggesting that tying the outflow to Strategy is largely speculative.

According to Jiang, Strategy's balance sheet shows that its debt constitutes only about 5% of its total assets, and this number would only rise to 10% in the event Bitcoin's price fell to $30,000. He believes this low leverage underpins their strategy of not needing to sell Bitcoin aggressively.

Moreover, Jiang defended the issuance of STRC, the preferred shares that Strategy uses to raise cash. He highlighted that these shares pay an annual dividend of 11.5%, which can be supported by selling lower-cost Bitcoin. As long as the company can raise new funds through STRC sales, it remains a net buyer of Bitcoin.

Despite Jiang's confidence, others in the financial community caution that a prolonged bear market could lead to higher interest obligations for Strategy, potentially forcing the company to sell more Bitcoin than it intends. The price of Bitcoin hovers around $63,400, reflecting a decline of nearly 10% within a week.

As the situation develops, observers will be keen to see how Strategy navigates these market pressures without compromising its Bitcoin strategy.