Arca's Chief Investment Officer: Strategy has absolutely no need to sell BTC unless the price drops to a level where selling would be inconsequential.

Odaily Planet Daily reports that Arca's Chief Investment Officer, Jeff Dorman, posted this morning: "For years I've been debunking misconceptions about Strategy (MSTR), but every time BTC drops, the same nonsense resurfaces—someone says MSTR will be forced to sell BTC, or that its holdings will be liquidated, as if it were some kind of leveraged perpetual contract… Anyone who spends less than five minutes consulting any debt or equity expert will understand that unless the drop in BTC is so severe that MSTR's selling becomes insignificant, MSTR has absolutely no need to sell BTC."

Dorman added that the main reasons why MSTR does not need to sell BTC are as follows:

1. Given that Saylor holds a 42% stake, it is virtually impossible for activist investors to control the board of directors;

2. The debt terms do not contain any clause for forced sale;

3. Interest expenses are within a controllable range (don't forget that its core technology business can still generate positive cash flow).

4. Few companies default on their debts when they mature (investors are like sheep, almost always choosing to extend the debt—using delay to solve the problem).