Strategy CEO Defends Buying Bitcoin at $80K After Selling Near $60K
Strategy's CEO Phong Le defended his company's decision to buy Bitcoin near $80,000 after selling at around $60,000. According to him, this was the 'right trade' due to the firm's strengthened balance sheet and increased cost of capital.
The company's total assets grew by 34% over two months, with its Bitcoin holdings increasing from $48 billion to $65 billion. Le stated that Strategy's 'two-way strategy' involves buying and selling Bitcoin based on the firm's needs, rather than solely focusing on price. He emphasized that a company not willing to sell Bitcoin is not considered a 'true operating business'.
Le also addressed Alliance Global's recent initiation of coverage for Strategy with a 'Buy' rating and a $217 price target, citing the company's significant Bitcoin holdings as a key factor. The analyst expects a 'bull run' in Bitcoin over the next six to 18 months due to scarcity and demand building alongside a clearer regulatory picture.
Le expressed opposition to Morgan Stanley Capital International's (MSCI) proposal to exclude non-operating asset companies from its Global Investable Market Indexes, calling it 'discriminatory, arbitrary, and misguided'. He argued that this move goes against existing SEC and accounting standards that view Bitcoin as an operating asset.