Exchange Ranking
Top Exchanges
24h Volume Ranking
Popularity Ranking
Exchange BTC Balance
Proof of Reserves
Decentralized Exchanges
Funding Rate
Funding Heatmap
Liquidation Data
Max Pain
Long/Short Ratio
Whale L/S Ratio
Binance/Okex/Huobi L/S
Bitfinex Margin L/S
ETF Tracker
Solana ETF
XRP ETF
Hong Kong ETF
Bitcoin Treasuries
Crypto Reversal
Ethereum Reserves
HyperLiquid Wallet Analysis
Hyperliquid Whale Watch
Large Transactions
On-chain Movement
Bitcoin ROI
Stablecoin Market Cap
Options Analysis
News
Articles
Economic Calendar
Features
Wallet
Contract Calculator
Security
Collections
Watchlist
Following
BTC Strategy CEO talks about Bitcoin trading: It seems to sell low and buy high, but it is actually balance sheet management
Strategy CEO Phong Le said that he does not regret selling Bitcoin at a price close to US$60,000 and buying it back at a higher price a few weeks later. In an interview with Bloomberg Crypto Channel on Wednesday, Le said the seemingly "sell low and buy high" operation reflected changes in the company's balance sheet and financing costs, rather than a bet on Bitcoin prices.
"Selling Bitcoin to fund our STRC dividends was the right step then," Le said."Now issuing MSTR shares at a premium to buy Bitcoin is also the right choice."
According to the company's Bitcoin ledger, Strategy sold 6,916 bitcoins in four batches from late June to mid-August, with a weighted average price of approximately US$62,200; it subsequently bought 4,603 bitcoins last week, with an average price of US$80,318. According to regulatory filings filed on August 31, the company purchased 4,603 bitcoins for $369.7 million in the week ended August 30, with an average of $80,318 each. The purchase was funded by the sale of MSTR shares, bringing its total Bitcoin holdings to 845,050, worth approximately US$65.4 billion.
However, Le pointed out that Strategy's decisions are driven by the balance sheet, not the Bitcoin market price. "We don't really make bitcoin-related decisions based on the price of bitcoin," he said."We haven't bought bitcoin in the past two months, what have we done in that period? We consolidated our balance sheet."
Le said that during the two-month suspension of purchases, Strategy increased assets to $72 billion-of which $65 billion was in Bitcoin and about $7 billion was in dollar reserves-and reduced net debt from about $7 billion to zero. A stronger balance sheet makes it cheaper to issue MSTR shares, allowing the proceeds to be used to buy Bitcoin. When Strategy stock trading prices are at unfavorable levels, selling Bitcoin is a better way to fulfill obligations.
Strategy accelerated its purchases in February despite floating losses on its holdings and growing doubts about its debt and preferred stock financing. In May, Strategy abandoned its "never sell" stance and promised to remain a net buyer of Bitcoin. The shift came after STRC (its floating-rate perpetual preferred stock) fell below the $100 par value in June. Because Strategy adjusts the STRC dividend to keep the stock price close to $100, the decline in the stock price makes issuing more stocks less attractive, reducing the key source of financing for buying Bitcoin.
"This is a two-way strategy. Sometimes it makes sense to sell bitcoins,"Le said." Those 7,000 bitcoins account for less than 1% of our total holdings." Le said that although the sale accounted for less than 1% of Strategy's Bitcoin holdings, it attracted excessive attention-which has increased by 25% to 30% this year.
"A one-way hoarder is not a real operating company," he said."Being able to buy and sell bitcoins, buy and sell stocks, buy and sell preferred stocks, this is a real operating company, a two-way capital management company. We are such a company."
