Strategy Sees Bitcoin Buying as Cost of Capital Play, Not Market Timing

Strategy's CEO Phong Le said the company's decision to buy Bitcoin again is based on capital costs, not market timing. The math behind Strategy's purchases comes down to whether selling shares or debt costs less than Bitcoin's expected return.

Le compared this calculation to financing a data center buildout, where land and energy costs have increased, but the cost of raising capital has remained low.

Strategy ranked fourth among public companies for equity capital raised this year, behind only SpaceX, Google, and Intel. Le said the company would continue to buy Bitcoin at prices up to $130,000, and even as high as $260,000, if it later climbs that far.

Le also expects Strategy's fight against an MSCI index removal proposal to be a significant issue for the company. The proposal aims to exclude companies with large Bitcoin treasuries from certain indexes, which could impact Strategy's operations and reputation.