Strategy Buys Bitcoin Again Based on Cost of Capital, Not Price

Strategy's President and CEO Phong Le stated that the company's decision to buy Bitcoin (BTC) again has little to do with the cryptocurrency's price. Instead, the math behind Strategy's renewed purchases comes down to the cost of capital, not market timing.

Le compared the underlying calculation to financing a data center buildout. He explained that land and energy costs have climbed, even as the cost of raising capital stayed low.

Strategy resumed its Bitcoin purchases after a 10-week pause spent shoring up its balance sheet. Le said the trade only works when selling shares or debt costs less than Bitcoin's expected return. Strategy ranked fourth among public companies for equity capital raised this year, behind only SpaceX, Google, and Intel.

Le also addressed criticism that Strategy only accumulates Bitcoin, calling it a 'two way strategy' instead. He said the company sells about 1% of its holdings to fund dividends and buybacks when needed. Le expects Bitcoin's rally to continue well beyond current levels, saying he would keep buying at $80,000, $90,000, or $100,000, and even at a $130,000 all-time high.