Strategy CEO Stands by Decision to Sell Bitcoin at $60K Before Higher Purchase

CEO Justifies Strategic Bitcoin Transactions

Phong Le, CEO of Strategy, defended the company's decision to sell 6,948 Bitcoin during the summer for an average of $62,200, only to repurchase 4,603 BTC at a higher average price of $80,318. Le maintains that these moves were strategically sound, driven by financial needs rather than market speculation.

In an interview with Bloomberg Crypto, Le explained that the sale was necessary to finance dividends for the company’s STRC stock. He stated, "Selling Bitcoin was the right strategy at that moment to finance our STRC dividends." The firm has now redefined itself as a “two-way capital management company,” emphasizing its focus on Bitcoin acquisitions.

Details of the Transactions

Strategy's Bitcoin ledger indicates that the firm executed the sale of 6,916 BTC across four transactions from late June to mid-August. The subsequent purchase of 4,603 BTC, valued at approximately $369.7 million, occurred in the week ending August 30, boosting its Bitcoin holdings to a total of 845,050 BTC, valued at around $65.4 billion.

Le highlighted that the company's decisions are influenced more by its financial health than by Bitcoin's price fluctuations. During a two-month period without Bitcoin purchases, Strategy focused on strengthening its balance sheet, which grew to $72 billion, including $65 billion in Bitcoin and $7 billion in cash reserves. Additionally, net debt was reduced to zero, improving the firm's financial position.

Despite past challenges related to debt and preferred-share financing, Strategy increased its Bitcoin purchases in February and adjusted its approach in May. The company moved away from its previous “never sell” strategy as its preferred stock value fell below $100, complicating stock issuance for Bitcoin acquisitions.