Strategy sold approximately 7,000 bitcoin in the $60,000 to $65,000 range this summer, then purchased 4,603 bitcoin at an average price of $80,318 between August 24 and August 30, according to CEO Phong Le. While the trades appeared disadvantageous on their surface, Le characterized both decisions as strategically sound.
Speaking on Bloomberg Crypto, Le said the initial sale was "the right trade at the time to sell bitcoin to fund some of our Stretch dividends," referring to STRC, the company's variable-rate preferred stock. He emphasized that Strategy's decision-making focuses on cost of capital rather than bitcoin price movements, selling equity when the stock trades at a premium to its holdings and reducing bitcoin positions only when equity represents the more expensive capital option.
Balance Sheet Improvements
During the 10-week period between the sale and repurchase, Strategy reduced its net debt from approximately $7 billion to zero while accumulating roughly $7 billion in cash. The company funded the 4,603-coin purchase through a $602.8 million at-the-market stock offering and repurchased $151.8 million of STRC preferred shares.
Le described the resulting position as a "bullet-proof balance sheet," arguing that zero net debt combined with $7 billion in cash reserves prevents forced selling regardless of bitcoin price fluctuations.
Holdings and Performance
Strategy held 845,050 bitcoin after the August purchase, acquired at an average cost of $75,412 per coin for a total of $63.73 billion. At the time of reporting, with bitcoin trading near $79,700, the holdings carried a paper gain of approximately $3.6 billion.
Le noted that Strategy purchased approximately 175,000 bitcoin during the year while selling about 7,000, representing a 25-to-1 buying-to-selling ratio. He stated the company does not anticipate selling bitcoin as it enters what he considers "a pretty heavy bull market," reiterating that Strategy remains "a net accumulator."
