Strategy CEO Defends $60K BTC Sell, $80K Buy: Capital Costs Over Market Price

Strategy CEO Phong Le defended the company's decision to sell Bitcoin near $60,000 before resuming purchases around $80,000. According to Le, Strategy's treasury trades depend on capital costs rather than Bitcoin's market price.

Strategy bought 4,603 BTC for $369.7 million at an average price of $80,318 last week. This purchase lifted its holdings to 845,050 BTC, acquired for approximately $63.73 billion at an average cost of $75,412 per coin.

Le explained that Strategy does not decide whether to buy or sell Bitcoin solely by comparing the cryptocurrency's current price with past levels. Instead, management considers the cost of raising capital and the return it expects from deploying that capital. If Strategy can issue common shares at a premium to the value of its assets, it may use the proceeds to buy Bitcoin while increasing Bitcoin exposure on a per-share basis.

Le described the balance sheet as a 'fortress,' arguing that Strategy has no meaningful Bitcoin liquidation price under its current structure. However, lower Bitcoin prices could reduce Strategy's asset value and increase pressure from preferred dividends and other obligations.