Strategy (MSTR) CEO Says Bitcoin Sale Was About Market ‘Inoculation,’ Not A Retreat

Strategy Inc. CEO Phong Le faced criticism after the company’s recent Bitcoin sale, but he defended the move in an interview with CNBC’s Power Lunch. Le explained that the sale was a strategic decision to test operational processes and signal flexibility, rather than a philosophical shift.

During the sale between May 26 and May 31, Strategy sold 32 Bitcoin for $2.5 million, representing a small fraction of its total holdings. The sale sparked debate over whether the company was abandoning Michael Saylor’s “never sell” doctrine. However, Le emphasized that the sale was about balance sheet management, not a change in conviction.

Le outlined three reasons for the sale: to demonstrate the ability to sell when necessary, test internal systems for executing Bitcoin disposals, and capture tax losses on Bitcoin acquired at lower cost basis. He clarified that the sale was not driven by financial distress and proceeds were used for distributions on the company’s preferred stock.

Despite the sale, Strategy remained a net buyer, purchasing 1,500 Bitcoin during the same period. Le addressed criticism from investors who believed the company had pledged never to liquidate its Bitcoin reserves, stating that decisions would be made in the best interest of stakeholders.

This was not Strategy’s first Bitcoin disposal, as the company had previously engaged in tax-loss harvesting maneuvers. Le remained bullish on Bitcoin’s long-term prospects, citing it as a hedge against inflation and big government.

Following the sale, Bitcoin’s price dropped to around $61,600, down significantly from its all-time high. Strategy’s shares also experienced a decline, trading at a fraction of their peak value. To restore market confidence, Strategy resumed buying Bitcoin at a lower price.

As of late May, Strategy held a substantial amount of Bitcoin with a total cost basis of approximately $63.97 billion. Despite the recent sale and market volatility, Le reaffirmed his belief in Bitcoin’s underlying value and the company’s strategic approach to managing its digital asset portfolio.