Strategy (MSTR) CEO Phong Le has clarified that the company's recent sale of 32 Bitcoin was a deliberate test of its processes and a signal to the market, rather than a liquidity-driven move. Speaking on CNBC's Power Lunch, Le said the sale aimed to “inoculate the market” to the fact that Strategy is willing to sell BTC when necessary, even though it hadn’t needed to. The transaction came shortly before Strategy purchased over 1,500 BTC, reinforcing its long-standing identity as a net buyer.
The debate over Strategy’s capital structure also resurfaced at BTC Prague, where Executive Chairman Michael Saylor and Strike CEO Jack Mallers clashed on valuation metrics. Mallers questioned Saylor’s definition of multiple-to-net asset value (mNAV), noting that $6.7 billion in convertible debt is currently out of the money. Saylor responded that mNAV can include notional value of convertible debt and preferred equity, but other metrics like gross assets per share are equally valid. On dilution, Saylor argued equity issuance for cash is not inherently dilutive because it brings tangible assets, strengthening the balance sheet.
Le echoed that robustness, stressing the sale was not needed for the $1.14 per share dividend on STRC preferred stock. “We’re able to do that through other capital-raising activities,” he said. The CEO acknowledged retail Bitcoin maximalists were “unnerved” by the sale, but insisted institutional shareholders understood. At press time, BTC traded at $62,672, down over 20% over the past month.
