TLDR:
- Strategy sold 7,000 BTC near $60K to fund preferred dividends, calling it the right trade.
- Net debt fell from $7 billion to zero while dollar reserves grew to $7 billion.
- Total assets reached $72 billion, including $65 billion in Bitcoin holdings.
- Strategy opposes MSCI’s proposal to exclude firms with non-operating assets from stock indexes.
Strategy CEO Phong Le defended two opposite Bitcoin trades as equally correct decisions during a recent Bloomberg TV interview.
Le said selling Bitcoin between $60,000 and $65,000, then buying again near $80,000, both reflected sound financial judgment. He explained that Strategy bases its choices on cost of capital rather than price direction alone.
Selling at $60K Reflected Capital Needs, Not Price Doubt
Le said the earlier Bitcoin sale, covering roughly 7,000 BTC, was tied to funding preferred dividends. He described it as the right trade at the time, based on where Strategy’s balance sheet stood then.
The amount sold represented less than 1% of total Bitcoin holdings. Le said this kind of sale is part of running Strategy as an operating company, not purely a Bitcoin accumulator.
He compared the sale to financing decisions companies make around large infrastructure investments. According to Le, the goal was never to predict short-term Bitcoin price movement.
Instead, the sale addressed an immediate capital requirement using existing Bitcoin reserves. This distinction, he said, separates Strategy’s approach from simple market timing.
Over the following two months, Strategy reduced its net debt from about $7 billion to zero. During that stretch, the company also built roughly $7 billion in U.S. dollar reserves.
Total assets climbed to around $72 billion, with $65 billion held directly in Bitcoin. Le referred to this position as a fortress balance sheet.
With debt cleared and reserves strengthened, Strategy resumed Bitcoin buying near $80,000. Le said this purchase used the same cost-of-capital reasoning applied to the earlier sale.
He noted that selling MSTR shares at a premium now supports funding additional Bitcoin purchases. Le called this a two-way strategy rather than one-directional accumulation.
Buying at $80K Fits a Longer-Term Accumulation Plan
Despite the earlier sale, Le stressed that Strategy remains a net accumulator of Bitcoin overall. He said the company expects to keep buying at higher price levels if conditions remain favorable.
Le pointed to $90,000, $100,000, and even $130,000 as levels where purchases could still make sense. The company views Bitcoin accumulation as a long-term financial strategy.
Alongside the Bitcoin trading discussion, Strategy and Michael Saylor formally opposed an MSCI proposal. The proposal would exclude companies holding non-operating assets from global stock indexes. Strategy argues this classification treats Bitcoin holdings inconsistently compared to other asset types.
Strategy noted that current accounting rules already classify Bitcoin gains and losses as operating income. Meanwhile, assets like wood and oil remain classified as operating income under existing index standards. The company said this inconsistency conflicts with the role of index providers as neutral market arbiters.
Strategy confirmed it is participating in MSCI’s feedback process regarding the proposed change. The company also cited $6.7 billion in U.S. dollar reserves as part of its financial position. Strategy said its capital-raising ability places it among major participants in broader capital markets today.
