MicroStrategy Explains Why It Sold Bitcoin Below $60K Only to Buy Back at Higher Price
Michael Saylor's company, MicroStrategy (MSTR), has been accumulating Bitcoin over the past few years. Recently, Chief Strategy Officer Phong Le explained why the company sold some of its BTC at a price below $60,000 and then repurchased it later at a higher price.
In an interview with Bloomberg Crypto, Le stated that selling Bitcoin was the 'right transaction' to fund dividends for STRC holders. At the time, MicroStrategy sold 6,916 BTC in four tranches at a weighted average price of about $62,200. The company then repurchased 4,603 BTC at an average price of $80,318.
Le emphasized that their decisions were based on the company's balance sheet and financing costs, not the market price of Bitcoin. During the two-month pause in purchasing, MicroStrategy strengthened its balance sheet by growing assets to $72 billion, of which $65 billion was in Bitcoin and around $7 billion in USD reserves.
Le noted that a stronger balance sheet has lowered the cost of issuing MSTR stock and using the proceeds to buy more Bitcoin. He stated, 'Those 7,000 BTC are less than 1% of our total Bitcoin holdings.' The company's Bitcoin holdings have increased by 25-30% this year.