Strategy CEO Defends 'Right Trade' in Bitcoin Strategy
Strategy's CEO Phong Le has defended his company's Bitcoin trading strategy, stating that selling BTC near $60,000 and buying it back at a higher price was 'the right trade' each time.
The company sold 6,916 BTC in four tranches from late June to mid-August at an average price of about $62,200. It then bought 4,603 BTC last week at an average price of $80,318.
Le emphasized that Strategy's decisions are driven by its balance sheet rather than Bitcoin's market price, stating 'We don't really make decisions on Bitcoin specific to Bitcoin price.'
The stronger balance sheet allowed Strategy to issue MSTR shares and use the proceeds to buy more BTC at a lower cost. When STRC - its variable-rate perpetual preferred stock - fell below its $100 stated value in June, selling Bitcoin was the better way to meet its obligations.