Strategy CEO Says Bitcoin Purchases Are Driven by Capital Costs, Not Price

Strategy has resumed buying Bitcoin (BTC) after a 10‑week pause during which the company focused on shoring up its balance sheet. President and CEO Phong Le said the decision is guided by the cost of capital, not by Bitcoin’s current price.

Capital‑Cost Driven Decision

Le compared the calculation to financing a data‑center buildout, noting that while land and energy costs have risen, the cost of raising capital remains low. He stated, “We don’t really make decisions on Bitcoin specific to Bitcoin price.” The trade only works when the cost of selling shares or issuing debt is lower than the expected return on Bitcoin.

Balance‑Sheet Strategy

Strategy ranked fourth among public companies for equity capital raised this year, behind SpaceX, Google, and Intel. The firm follows a “two‑way strategy,” occasionally selling Bitcoin to fund dividends and buybacks. Earlier in the year it sold about 7,000 BTC—under 1% of its holdings—for those purposes.

Outlook on Bitcoin’s Rally

Le indicated confidence in a sustained bull market, saying the company would continue buying at price levels ranging from $80,000 to $130,000, and that purchases would be justified if Bitcoin later reaches $260,000.

MSCI Index Proposal

Strategy is opposing an MSCI proposal that could exclude companies with large Bitcoin treasuries from its indexes. Le argues Bitcoin is an operating asset on the balance sheet, not a passive holding, and the outcome of the proposal could affect the firm’s inclusion in MSCI indexes after the October 16 ruling.