Strategy says it aims to become the world's most valuable company

Strategy reiterated its ambition to become the world's most valuable company by market capitalization while adding that recent Bitcoin sales are meant to support capital management rather than signal a change in its long-term strategy. On its Q2 earnings call, CEO Phong Le said the company may monetize portions of its holdings to build its U.S. dollar reserve to as much as $5 billion, fund preferred dividend obligations and support up to $2 billion in authorized security repurchases. The company currently holds about 843,000 BTC and is targeting an additional $1.25 billion in cash reserves, which Le said would be enough to cover nearly three years of its current annual dividend and interest obligations of $1.76 billion. He disclosed that Strategy first sold 32 BTC in the week ending May 31 to test operational processes, realizing roughly a $1 million loss and creating a potential $400,000 tax asset. A month later, it sold 3,588 BTC, or about 0.4% of holdings, raising around $216 million to fund preferred stock dividends due at the end of June, with the realized loss potentially translating into an estimated $59 million tax benefit. Le said Strategy has roughly $18.5 billion in unrealized Bitcoin losses that could represent a potential $5.4 billion future tax benefit through strategic sales. He also argued the company's trading activity does not materially move the Bitcoin market, noting average daily Bitcoin volume of about $26 billion, peak Strategy weekly accumulation equal to 1.42% of market liquidity, average daily purchases over the past year at 0.22% of trading volume and its largest disposal at about 0.08% of daily liquidity. He said ongoing sales to fund annual preferred dividends would average about $5 million a day, or 0.02% of average daily trading volume, underscoring management's view that Bitcoin remains both a core reserve asset and a highly liquid funding source.