Strategy CEO Explains Why Selling BTC at $60K and Buying Back at $80K Made Sense

Strategy CEO Phong Le explained why his company sold Bitcoin at $60,000 and bought it back at $80,000. In an interview on Bloomberg Crypto, he said that Strategy's treasury transactions depend on capital costs rather than the market price of Bitcoin.

According to Le, Strategy purchased 4,603 BTC for $369.7 million between August 24 and August 30 at an average price of $80,318. This purchase lifted its holdings to 845,050 BTC, acquired for approximately $63.73 billion at an average cost of $75,412 per coin.

Strategy links its Bitcoin trades to capital costs rather than the cryptocurrency's market value. Le said that management considers the cost of raising capital and the return it expects from deploying that capital when deciding whether to buy or sell Bitcoin.

The company sold approximately 7,000 BTC during its balance sheet restructuring, describing the amount as 'minuscule' relative to its total holdings. Strategy's public Bitcoin ledger records sales of 2,225 BTC in early July, 1,638 BTC in early August, and 1,690 BTC the following week.

Le said that selling Bitcoin was necessary to fund part of its preferred dividend obligations and strengthen its balance sheet. Over roughly two months, it increased dollar assets while reducing its net exposure to convertible debt. The company reported $6.71 billion in USD assets as of August 30, which comprised cash and other dollar-denominated holdings allocated across its designated reserve and general corporate liquidity.

Strategy now operates a 'two-way strategy,' where it may sell Bitcoin when doing so improves its capital structure. Le said that the company could continue purchasing Bitcoin at higher prices if the cost of capital makes those purchases attractive, such as $90,000 or $100,000.