Michael Saylor’s strategy was a major Bitcoin buyer. Is the company about to sell off its inventory?

Math is greater than faith, it seems.

Strategy (MSTR), the enterprise software company best known for storing bitcoin, has stunned its investors with the prospect of it being able to do so. He sells. Although Strategy CEO and Bitcoin evangelist Michael Saylor has long advocated holding Bitcoin indefinitely, and recently said he “won’t back down,” CEO Phuong Lu said last week that the company would, under certain conditions, He sells.

The company has retreated amid what appears to be the beginning of the crypto winter, and after more than five years of holding on to every bitcoin it has purchased since the creation of its bitcoin treasury. Between Bitcoin’s roughly 30% pullback from recent highs and Strategy’s own stock performance, a near-term sell-off is within the realm of possibility and could send coin prices lower further.

At least one of the two conditions set by Lu — if the company’s stock market capitalization falls below the net asset value of its bitcoin holdings — is about to be met. Strategy’s stock is down 60% since hitting a record high in July, putting its market value very close to that of Bitcoin despite the rally the stock is seeing today combined with Bitcoin’s rebound.

“I hope our digital asset value is no less than one, but if we did and we didn’t have access to other capital, we would sell bitcoin,” he said in an interview last week. “There’s a sports side of me that says this is absolutely the right thing to do.”

Strategy’s “mNAV,” a valuation metric that compares the market value of its shares to the value of its bitcoin holdings on a fully diluted basis, is 1.01, according to blockchain analytics firm Artemis.

Saylor on Monday justified the possibility of selling Bitcoin. “We will make rational decisions that are in the best interest of shareholders,” he said in a presentation to investors. “Now there are some people who will say, ‘Well, if you’re selling bitcoin, that means you’re not committed to bitcoin.’ Well, that’s not really true.”

While news of Strategy’s potential plans to sell has inspired some tell-you posts on social media, others appear to be rallying behind the company as cryptocurrency prices surge in recent sessions. Bitcoin was back above $91,000 on Tuesday afternoon, after falling to the $84,500 level over the weekend. Strategic shares rose about 6% on Tuesday.

Meanwhile, the company announced on Monday that it had purchased an additional 130 bitcoins, bringing its inventory to 650,000 coins, worth roughly $59 billion based on recent prices. It also set aside $1.44 billion to pay dividends on its preferred shares and interest on its outstanding debt, and updated its 2025 earnings guidance assuming the price of bitcoin at the end of the year falls from $85,000 to $110,000. The company had previously set Bitcoin price guidance of around $150,000 at the end of the year.