Strategy CEO Phong Le was interviewed by Bloomberg TV in early September, explaining the company’s sale of approximately 7,000 Bitcoin at prices between $60,000 and $65,000. The purpose of the sale was to pay dividends on Stretch preferred stock, and the decision was based on a capital costs framework rather than a directional judgment about Bitcoin’s offer price.
Phong Le Interview: Decision Basis for Selling 7,000 Bitcoin
Phong Le stated on Bloomberg TV that selling approximately 7,000 Bitcoin in the $60,000 to $65,000 range was “the right trade at the time,” specifically to pay part of the dividends on Stretch preferred stock. Le said Strategy’s decisions to buy and sell Bitcoin are based on “capital costs,” rather than on a directional judgment about Bitcoin’s offer price. He also stated that the company could continue buying Bitcoin when it is priced at $90,000, $100,000, or even $130,000, provided that the capital economics of exchanging an MSTR stock premium for Bitcoin remain attractive to the company.
Balance Sheet Adjustments During the 10-Week Pause on Buying Crypto: Results
According to Le, Strategy completed the following balance sheet adjustments during its approximately 10-week pause on buying crypto:
· Net debt fell from approximately $7 billion to zero
· Established approximately $7 billion in cash reserves
· Sold approximately 7,000 Bitcoin, accounting for less than 1% of its total holdings
During this pause, Strategy’s first-quarter 2026 financial report showed that the company incurred a $12.5 billion loss due to preferred stock dividends and interest expenses.
Latest Holdings After Resuming Bitcoin Purchases: 845,050 Bitcoin
Strategy purchased 4,603 Bitcoin last week at an average price of $80,318, for a total of approximately $370 million. After resuming Bitcoin purchases, its total holdings reached 845,050 Bitcoin, worth approximately $650 billion at current market prices, with holdings increasing by approximately 30% this year. In the interview, Le characterized the company as a “net accumulator” and said it follows a “two-way strategy”: It can sell Bitcoin when funding needs arise and continue buying when funds are sufficient.
Bernstein Report: MSTR Price Target Cut to $350
Bernstein released a report last week lowering its MSTR price target from $450 to $350 while maintaining an “Outperform” rating. The three considerations listed in the report were MSTR’s current premium level, the ongoing pressure that preferred stock dividends place on free cash flow, and the rising trend in Bitcoin’s recent volatility. The same report projected that Bitcoin would reach $150,000 by mid-2027.
FAQ
Why did Strategy sell approximately 7,000 Bitcoin?
According to CEO Phong Le’s statement on Bloomberg TV, the purpose of the sale was to pay part of the dividends on Stretch preferred stock, and the decision was based on a capital costs framework rather than a directional judgment about Bitcoin’s offer price.
What are Strategy’s current total Bitcoin holdings?
As of the latest data, Strategy holds 845,050 Bitcoin, worth approximately $650 billion at current market prices, with holdings increasing by approximately 30% this year.
What are Bernstein’s latest rating and price target for MSTR?
Bernstein’s report last week maintained its “Outperform” rating for MSTR and lowered its price target from $450 to $350. The same report projected that Bitcoin would reach $150,000 by mid-2027.
