Strategy CEO Phong Le Defends Bitcoin Sale as Balance Sheet Move

The chief executive of bitcoin treasury company Strategy has dismissed any worries investors might have about the firm parting with some of its holdings, explaining that the decision was intended to bolster its financial position. 

In an interview with Bloomberg on Tuesday, Phong Le described the company’s balance sheet as now “bullet-proof” and argued that selling bitcoin at that point was the “right trade at the time.” 

Strategy, which holds more bitcoin than any other corporation, resumed purchasing the cryptocurrency on Monday after a 10-week break. It had paused its acquisitions in June and instead sold modest amounts of its bitcoin while building up two cash reserves. 

“We don’t really make decisions specifically on bitcoin’s price,” Le stated. 

He added: “We’re a net accumulator, and so I don’t sit around and say, ‘Well, when am I going to sell Bitcoin next?’ It comes down to a bit of a capital management mathematical equation of when we would do it.”

“I don’t foresee us selling bitcoin as we enter into what I consider a pretty heavy bull market.” 

Strategy — previously known as MicroStrategy — is an enterprise software firm that shifted focus to acquiring and holding bitcoin in 2020. 

It originally bought the cryptocurrency as a hedge against inflation for its shareholders but has since expanded its holdings aggressively and repositioned itself as a bitcoin treasury operation. Today, it is the largest corporate holder of the digital asset, with 845,050 bitcoins valued at $65.1 billion at current market prices. 

Investors can gain amplified exposure to bitcoin’s performance by purchasing Strategy’s Nasdaq-listed shares under the ticker MSTR. 

This year, Strategy has repurchased some of its preferred stock, STRC, which trades at a discount, while also expanding its dollar reserves.  

During the company’s second-quarter earnings report in July, Strategy recorded an $8.22 billion loss. However, Le indicated that the firm’s current paper loss was not a major concern for now, and that its stock would surge again next year. 

“We’re the J.P. Morgan of the crypto economy, so whether we sell 1,000 Bitcoin out of 840,000 to me is irrelevant to the conversation,” Le remarked. 

Strategy shares (NASDAQ: MSTR) were down 2% on Wednesday. Year to date, the stock has fallen 22%.