Strategy CEO explains Bitcoin sales at $60K and purchases at $80K as capital‑cost decisions

Strategy (MSTR) CEO Phong Le defended recent Bitcoin transactions that appear contradictory – selling near $60,000 per coin and buying near $80,000 – by stating that the company’s treasury actions are governed by the cost of capital rather than market price.

Capital‑cost driven treasury policy

Le explained that Management evaluates the expense of raising capital and the expected return from deploying that capital. When common shares can be issued at a premium to the firm’s net asset value, the proceeds may be used to increase Bitcoin exposure on a per‑share basis. Conversely, if financing conditions are less favorable, selling Bitcoin to meet dollar‑denominated obligations can improve the balance sheet.

Recent Bitcoin activity

• Between Aug. 24‑30, Strategy bought 4,603 BTC for $369.7 million, at an average price of $80,318 per coin.
• The purchase raised total holdings to 845,050 BTC, acquired for roughly $63.73 billion at an average cost of $75,412 per coin.
• Earlier in the quarter, the company sold about 7,000 BTC (2,225 in early July, 1,638 in early August, 1,690 the following week) to fund preferred‑dividend obligations and other dollar‑liquidity needs.

Financing actions supporting the trades

During the week ending Aug. 30, Strategy issued approximately $602.8 million of common shares, using part of the proceeds for the BTC purchase. The firm also increased its general USD cash pool by $29 million and repurchased preferred shares for about $152 million.

Balance‑sheet impact

As of Aug. 30, Strategy reported $6.71 billion in USD assets, nearly matching its $6.75 billion convertible‑debt balance, resulting in a reported net leverage of 0.0 % (company‑defined metric). The metric reflects that dollar assets offset the principal amount of convertible debt, though preferred‑stock obligations and convertible notes remain outstanding.

Two‑way Bitcoin strategy

Strategy’s June‑approved Bitcoin monetization program permits up to $1.25 billion of BTC sales to fund a designated USD reserve, pay dividends, repurchase securities, or meet other approved uses. The policy marks a shift from a strict accumulation stance to an active management approach, allowing both purchases and sales when financing conditions warrant.

Outlook

Le indicated that future Bitcoin purchases could occur at higher price levels if the cost of capital remains attractive, while sales may be considered when proceeds are more valuable elsewhere in the capital structure. The next update will depend on weekly equity market activity and financing costs.