- Strategy sold around 7,000 BTC during its two-month buying pause, mostly between US$60,000 and US$65,000.
- CEO Phong Le said the sales were driven by capital costs and corporate obligations rather than Bitcoin’s price.
- Strategy resumed buying with 4,603 BTC at an average price of US$80,318, taking its holdings to 845,050 BTC.
- Le said Strategy could keep buying Bitcoin at US$90,000, US$100,000 or even US$130,000 if the capital economics remain attractive.
After Michael Saylor’s Strategy recently resumed buying Bitcoin, it now faces some questions about the timing of its sales and purchases. Bloomberg Crypto co-host Scarlet Fu asked Phong Le, CEO and president of Strategy, during a 2 September interview if selling Bitcoin in the US$60K (AU$83.65K) range and buying more in the US$80K (AU$111.53K) range was a “sell low and buy high” scenario.
As reported earlier this week, Strategy ended its two-month buying pause and bought 4,603 BTC for US$370 million (AU$516 million), bringing its total holdings to 845,050 BTC. The average price paid for these BTC was US$80,318 (AU$112,020).
During the buying pause, the firm sold approximately 7,000 BTC between US$60K (AU$83.7K) and US$65K (AU$90.68K).
Sales Due to Cost of Capital, Says Le
Le brushed aside concerns over the company’s decision to sell the BTC during its buying pause, saying the trades were driven by the cost of capital rather than Bitcoin’s price.
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“It was the right trade at the time to sell bitcoin to fund some of our Stretch dividends,” Le said on Tuesday. He said Strategy remains a “net accumulator”, but has moved towards a “two-way strategy” that allows it to sell Bitcoin when needed to fund dividends and other obligations, while also taking advantage of opportunities to raise capital and buy more BTC.
Le said the roughly 7,000 BTC sold represented less than 1% of Strategy’s total holdings, which have grown by about 30% this year. He also said the company could continue buying Bitcoin at US$90K (AU$125.5K), US$100K (AU$139.5K) or even US$130K (AU$181.36K), as long as the economics of raising capital remain attractive.
Saylor Stands to “Never Sell Your Bitcoin”
Saylor hinted that Strategy would restart its buying in a tweet before the purchase, which simply said, “we’re back”. When questioned about the Bitcoin sales and how this contradicted his usual mantra to “never sell your Bitcoin”, he said those comments were aimed at individual investors.
He also said he had never sold his own BTC. Strategy’s sales were due to corporate obligations, while also showing that it can sell BTC without affecting the market and providing liquidity.
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