Overview

  • Strategy disposed of 6,948 BTC this summer, later acquiring 4,603 BTC at an average cost of $80,318.
  • CEO Phong Le affirmed both transactions were “the right trade” at the respective times.
  • The firm now identifies itself as a “two-way capital management company,” while still predominantly acquiring Bitcoin.

Phong Le, the CEO of Strategy, expressed no remorse over selling Bitcoin when it was valued around $60,000, only to repurchase it later at a higher price.

During an interview with Bloomberg Crypto on Wednesday, Le explained that the decision to sell low and buy high was based on the company’s financial needs rather than a speculative bet on Bitcoin’s market price.

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“Selling Bitcoin was the right strategy at that moment to finance our STRC dividends,” Le stated. “Currently, selling MSTR shares at a premium to acquire Bitcoin is also a sound move.”

According to the company’s Bitcoin ledger, Strategy sold 6,916 BTC in four separate transactions from late June to mid-August, achieving a weighted average price of around $62,200, and subsequently purchased 4,603 BTC last week at an average price of $80,318.

In the week ending August 30, the firm acquired 4,603 BTC for $369.7 million, paying an average of $80,318 per Bitcoin as per an August 31 regulatory filing. This purchase was financed by selling MSTR shares, increasing their Bitcoin holdings to 845,050 BTC, valued at approximately $65.4 billion.

Le emphasized that Strategy's decisions are more influenced by its financial health rather than fluctuations in Bitcoin's price.

“Our decisions regarding Bitcoin are not strictly tied to its market price,” he remarked. “During the two months we refrained from buying Bitcoin, we focused on bolstering our balance sheet.”

In that period, Strategy enhanced its assets to $72 billion—comprised of $65 billion in Bitcoin and $7 billion in cash reserves—while also reducing its net debt from about $7 billion to zero, according to Le.

This strengthened balance sheet allowed for more cost-effective issuance of MSTR shares, which could then be utilized to acquire Bitcoin. When the shares traded unfavorably, selling Bitcoin became the more viable option for meeting obligations.

Despite facing underwater positions and rising concerns over its debt and preferred-share financing, Strategy ramped up its Bitcoin purchases in February.

In May, the company shifted away from its “never sell” philosophy, vowing to remain a net buyer of Bitcoin. This change occurred as its STRC—variable-rate perpetual preferred stock—dropped below its $100 stated value in June. The decline made issuing additional stock less appealing, impacting a crucial funding source for Bitcoin acquisitions.