Strategy CEO Phong Le said the company’s recent sale of 32 BTC was not driven by liquidity needs, but by a deliberate effort to show the market that the company can sell BTC when necessary and test its internal execution process. These comments came after purchasing the strategy Approximately more than 1500 BTC per week AAfter a small sale, its first sale since 2022.
talk on CNBC Energy LunchLu disputed the idea that the sale represented a shift in the strategy’s long-term accumulation strategy. BTC traded at around $61,000 during the sector, roughly flat on the day but has fallen more than 20% over the past month, after recently falling below $60,000 for the first time since October 2024.
“We are a net buyer of bitcoin,” Lu said, noting the company purchased about 1,500 bitcoin over the past month. “Why sell? There are several reasons. First, we thought it would be a good idea to inoculate the market into understanding that we are willing to sell Bitcoin when we need to. We didn’t need to, but it is an important thing to do.”
Lu added that buying Bitcoin is operationally easier for the strategy than selling it, Make a transaction worth 32 BTC Useful direct testing of company operations. He also said that over time the company may be able to capture the tax loss assets on its balance sheet related to sales, given that Strategy bought bitcoin at prices ranging from $10,000 to $125,000.
Importantly, Lu said the sale was not required to fund the dividend. “One of the reasons we didn’t sell our bitcoin was because we didn’t need to sell our bitcoin to meet our profits,” he said. “We are able to do this through other capital raising activities.”
The strategy says it remains a net buyer of Bitcoin
The sell-off attracted attention because Strategy built its public market identity around the strong accumulation of Bitcoin. Lu acknowledged frustration among some investors and owners who interpreted the deal as a violation of the company’s “never sell” stance, but argued that the strategy has a broader set of stakeholders than extreme retail Bitcoin investors.
“We have a set of components that we need to be able to answer,” Lu said. “The first is our common stock, i.e. MSTR shareholders. The second is our preferred stock, i.e. STRC shareholders. The third is our debt holders, and the fourth is our bitcoin holders. Not necessarily in that order.”
He continued: “And when it makes sense for our ordinary shareholders to sell our bitcoin, we will do that. We already did that in 2022, so we will do that now. Again, if you are a holder of bitcoin, we are the largest holder of bitcoin in the world. We are the largest buyer of bitcoin in the world. And we will continue to do so.”
When pressed again about why he sold the company, Lu narrowed the explanation down to two points: “We sold because we wanted to graft the market, and we sold because we wanted to test our operations.” When asked what the strategy has taught him, he replied: “We have learned that everything works.”
Lu also suggested a reaction It was more evident among retail owners From between institutions. “The question is, why is the sale of 32 bitcoins getting so much attention?” He said. “Our institutional shareholders that we’re talking to don’t seem to be concerned about that. I think what’s concerning is the retail community that has views about never selling your bitcoin being anarchic in the crypto space. And frankly, we have a lot more than just voters.”
At press time, Bitcoin was trading at $62,672.
Featured image created with DALL.E, a chart from TradingView.com
Editing process Bitcoinist focuses on providing well-researched, accurate, and unbiased content. We adhere to strict sourcing standards, and every page is carefully reviewed by our team of senior technology experts and experienced editors. This process ensures the integrity, relevance, and value of our content to our readers.
