Strategy has resumed Bitcoin purchases following a 10-week pause, but according to President and CEO Phong Le, the timing is driven by capital costs rather than price movements.
Le explained that the company's investment logic hinges on whether the cost of raising capital through equity or debt is lower than Bitcoin's expected return. Strategy ranked fourth among public companies for equity capital raised this year, behind SpaceX, Google, and Intel, according to Le.
A Two-Way Strategy
Le characterized Strategy's approach as bidirectional rather than one-sided accumulation. Earlier this year, the company sold approximately 7,000 BTC, representing less than 1% of its holdings, to fund dividends and buybacks.
Le argued that debt holders and ratings agencies expect companies to be willing to sell assets when necessary. A firm that never sells, he said, is not fully operational.
Long-Term Conviction
Le's comments indicate confidence in Bitcoin's continued appreciation. He stated that Strategy would continue buying at price levels of $80,000, $90,000, $100,000, and even at a $130,000 all-time high, suggesting that current purchases would be justified if Bitcoin eventually reached $260,000.
MSCI Index Dispute
Le has also opposed a proposal from index provider MSCI to exclude companies with large Bitcoin treasuries from its benchmarks. He contends that Bitcoin functions as an operating asset on Strategy's balance sheet rather than a passive holding, a distinction that could affect whether the company remains in MSCI's indexes when a ruling is expected on October 16.
