Strategy's CEO Says Bitcoin Buys Come Down to Capital Costs, Not Price
Strategy is buying Bitcoin (BTC) again, but according to President and CEO Phong Le, the decision has little to do with where Bitcoin's price sits.
Le said the math behind Strategy's renewed purchases comes down to cost of capital, not market timing.
Why Bitcoin Buying Comes Down to Capital Costs
Strategy's resumed Bitcoin purchases followed a 10-week pause spent shoring up its balance sheet. Le compared the underlying calculation to financing a data center buildout.
Land and energy costs have climbed, he said, even as the cost of raising capital stayed low.
"We don't really make decisions on Bitcoin specific to Bitcoin price."
Phong Le, President and CEO, Strategy
He said the trade only works when selling shares or debt costs less than Bitcoin's expected return. Strategy ranked fourth among public companies for equity capital raised this year, behind only SpaceX, Google, and Intel, Le said.
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