The claim: no “substantially net sell” for Strategy
Jiang Zhuoer, CEO of China mining firm BTCTOP and a prominent Bitcoin mining figure, pushed back on fears that Strategy’s Bitcoin-backed financing model could force it into large, panic-driven BTC sales.
In a post on X, Jiang said he does not believe MicroStrategy, now Strategy, will “substantially net sell BTC.” He framed his argument around the company’s liabilities, STRC interest payments, funding structure, and investor concerns, as described in the translated group discussion he referenced.
Selling some BTC vs becoming a net seller
The core of Jiang’s case hinges on a distinction the market often blurs. He argued that Strategy can sell a limited amount of older, lower-cost Bitcoin to realize gains, make STRC-related payments, and reassure traditional investors without changing a broader accumulation posture.
Jiang’s logic, as attributed in the discussion, rests on a thesis of BTC compounding. The discussion presented a calculation that BTC can compound at around 30% annually, while allocating roughly 10% of value to interest costs would still leave room for the model to function.
The immediate question isn’t whether Strategy owns enough Bitcoin, Jiang argued. It is whether the financing structure looks credible to traditional investors if BTC weakens.
The “funding loop” fear and why accounting matters
Investors, per the discussion, worry about a model that appears circular. If later STRC proceeds fund earlier STRC interest, critics could view the structure as resembling a Ponzi-like funding loop. That framing is why, in Jiang’s view, selective Bitcoin sales may be necessary rather than alarming.
The translated discussion put it this way. Strategy would sell some of the earliest and cheapest BTC to produce realized, accounting gains. Those gains could support STRC interest payments. Meanwhile, newly raised STRC proceeds could then be used to buy additional Bitcoin, with the expectation that new purchases outweigh older sales.
Jiang’s cited condition is straightforward. “MicroStrategy has to sell some of the earliest and cheapest Bitcoin it bought,” the translated message said. The underlying point is that selling for realized gains can still leave the firm a net buyer if the scale of new buying exceeds the scale of older BTC sold.
MicroStrategy has to sell some of the earliest and cheapest Bitcoin it bought,
Liquidity anxiety: STRC pricing and debt coverage
Jiang also addressed fears that Strategy’s liabilities could spiral if STRC trades below par. He said the current debt-to-asset ratio is only about 5% and described STRC’s discount as a short-term sentiment issue, not an insolvency signal.
In a worst-case scenario, Jiang argued, continued payments over several months could help restore confidence in STRC.
He used an analogy. If a borrower has $10 billion in houses but borrows $500 million, lenders may still worry if the borrower insists the houses can never be sold. Jiang’s point is that willingness to sell changes the risk profile. The discussion drew the parallel directly, saying lenders’ concern eases “as long as I’m willing to sell houses,” and applying that logic to Strategy’s willingness to sell coins.
Why STRC holders might care about cashflow more than BTC upside
Another strand of Jiang’s argument separates STRC holders from direct Bitcoin holders. He said STRC buyers are not primarily betting on BTC upside. They care whether Strategy can pay dividends and meet payment obligations.
So, in his view, demonstrating monetization capacity, including the ability to sell Bitcoin when needed, could reduce the biggest concern among STRC investors. That, he argued, is distinct from whether Strategy’s overall long-term stance remains accumulation.
Where BTC was at press time
At press time, BTC traded at $63,468, according to the source text.
| Item | What the source says |
|---|---|
| Jiang Zhuoer’s position | He does not believe Strategy will “substantially net sell BTC” |
| Mechanism described | Selective sale of early, low-cost BTC to realize gains and fund STRC interest |
| Structure risk framed as | Using later STRC proceeds to pay earlier interest could look like a funding loop |
| Debt-to-asset ratio | About 5% (as stated by Jiang in the discussion) |
| STRC discount interpretation | Short-term market sentiment issue, not insolvency risk |
| BTC price at press time | $63,468 |