Strategy CEO Confirms Long-Term Bitcoin Buying Strategy Despite Recent Sales
Strategy has no plans to stop purchasing Bitcoin and remains committed to being a major long-term holder, according to its President and CEO Phong Le.
Key Statements from CEO Phong Le
In a recent Bloomberg TV interview, Phong Le stated, “We’re not going anywhere.” He confirmed the company’s goal is to remain one of the largest buyers of Bitcoin for the foreseeable future.
Le added that Strategy will only start worrying about debt risks if Bitcoin drops to the $8,000–$10,000 range. Currently, with Bitcoin trading around $65,000, the company feels very secure about its balance sheet.
Recent Financial Moves
Strategy recently sold over $215 million worth of Bitcoin as part of its capital management plan. The company has not bought any Bitcoin since the week ending June 22.
Last week, Strategy raised approximately $467 million through the sale of common stock. This boosted its cash reserves to roughly $3 billion, enough to cover preferred stock dividends for about two years and provide extra financial flexibility.
Debt Concerns and Future Plans
Le explained that the company increased its cash holdings after feedback from preferred shareholders. The recent Bitcoin sale was also meant to show the liquidity of its holdings.
He emphasized that Strategy has designed its capital structure to survive bear markets while staying ready for future rallies. The company successfully navigated the 2022 downturn and plans to keep accumulating Bitcoin over the long term.
Shift to Digital Capital Platform
Strategy is evolving from a simple Bitcoin treasury company into a broader digital capital platform. The company intends to raise more capital in the future to support additional Bitcoin purchases.
A major part of this plan involves STRC (Strategy’s perpetual preferred stock, also known as Stretch). Once STRC returns to its $100 par value, the company plans to issue more shares. Proceeds will be used to buy Bitcoin and strengthen its USD reserves.
Le noted that issuing more preferred stock is highly accretive to Bitcoin per share, which benefits shareholders. Currently, STRC is trading around $88.
Shareholder Focus
“Our shareholders understand our primary goal is to outperform Bitcoin over time,” Le said. As long as Strategy trades above the net asset value of its Bitcoin holdings, it can continue raising capital through equity.
Strategy’s market cap to net asset value multiple (mNAV) has recovered to about 1.02 after briefly falling below 1 last month.
