Strategy CEO Phong Le said Strategy had no regrets about selling Bitcoin near $60,000 and later buying it back at a higher price. Strategy sold Bitcoin in four tranches from late June through mid-August. The sales totaled 6,916 BTC at a weighted-average price of about $62,200. Strategy bought 4,603 BTC in the week ending Aug. 30. The purchase cost $369.7 million. The average price was $80,318 per coin. An Aug. 31 regulatory filing disclosed the purchase. Strategy financed it by selling MSTR shares. The purchase increased Strategy's holdings to 845,050 BTC. Those holdings were valued at around $65.4 billion. Le said the trades reflected changes in Strategy's balance sheet and financing costs rather than a bet on Bitcoin's price. He said Strategy's decisions are driven by its balance sheet rather than Bitcoin's market price. During a two-month pause in purchases, Strategy increased its assets to $72 billion. Bitcoin accounted for $65 billion of those assets. Dollar reserves accounted for about $7 billion. Le said Strategy reduced net debt from roughly $7 billion to zero. He said the stronger balance sheet made it cheaper to issue MSTR shares and use the proceeds to buy Bitcoin. He said selling Bitcoin was a better way to meet Strategy's obligations when its shares traded at less favorable levels. Strategy accelerated its Bitcoin purchases in February. The move came despite its holdings sitting underwater and questions about its debt and preferred-share financing. In May, Strategy abandoned its "never sell" position. The company instead pledged to remain a net Bitcoin buyer. STRC, Strategy's variable-rate perpetual preferred stock, fell below its $100 stated value in June. Strategy adjusts STRC's dividend to keep the shares trading near $100. The decline made issuing more stock less attractive and reduced a key source of funding for Bitcoin purchases. Le said Strategy follows a two-way strategy that can include selling Bitcoin. He said the 7,000 Bitcoin sale represented less than 1% of Strategy's total Bitcoin holdings. Le said Strategy's Bitcoin holdings increased by 25% to 30% this year. Strategy describes itself as a two-way capital management company and remains a net Bitcoin buyer.
Strategy CEO Says No Regrets Over $60,000 Bitcoin Sale
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Summary
Strategy CEO Phong Le says the firm has no regrets over selling Bitcoin near $60,000 and later buying it back higher. The trading strategy involved selling 6,916 BTC at $62,200 between late June and mid-August, then repurchasing 4,603 BTC at $80,318 in late August. The hedging strategy was funded by selling MSTR shares and disclosed in a filing. Strategy’s Bitcoin stake is now 845,050 BTC, worth $65.4 billion. Le said the moves were about balance sheet adjustments, not price. During the two-month pause, assets grew to $72 billion. Net debt dropped to zero, and preferred stock dividends were adjusted. The firm dropped its 'never sell' stance in May but remains a net buyer.
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