Strategy CEO Phong Le has clarified that the company's 32 BTC sale between May 26-31 was a strategic test rather than a cash need for dividend obligations. In a June 13 interview, Le explained that the sale helped 'inoculate the market' and provided a way to test internal Bitcoin sale processes. The transaction generated approximately $2.5 million at an average price of $77,135 per BTC, with proceeds initially expected to fund preferred stock distributions. However, Le emphasized that Strategy maintains other funding channels including equity and preferred stock tools to support its capital structure, and the sale created tax losses that may offset related taxes in future periods.
Strategy sold more than 1.4 million MSTR shares for approximately $181 million on June 8, according to company filings. The transaction included approximately $15 million worth of MSTR stock sold by executives for tax-related purposes. Despite the share issuance, Strategy acquired 1,550 BTC for approximately $101.3 million between June 1 and June 7, completing the purchases at an average price of $65,332 per Bitcoin during heavy market volatility. The company now holds 845,256 BTC, valued at roughly $51.9 billion based on current market prices. As per Strategy Executive Chairman Michael Saylor, the company added both Bitcoin and cash during the transaction, making the outcome positive for shareholders when both assets are considered.
The latest purchase has sparked intense debate on X between Bitcoin advocate Matthew Kratter and Executive Chairman Michael Saylor over whether the transaction was dilutive. According to Strategy's latest figures, BTC Yield fell from 13.0% on June 1 to 12.8% on June 8, despite the acquisition of 1,550 BTC. Kratter argued that the decline shows the transaction was dilutive on a bitcoin-per-share basis, pointing to the company's BTC Gain YTD falling from 87,754 BTC to 86,328 BTC over the same period. Over the same period, Strategy's bitcoin holdings rose from 843,706 BTC to 845,256 BTC, while assumed diluted shares outstanding increased from 382.756 million to 384.180 million. However, Saylor countered that BTC Yield is a narrow metric that measures only bitcoin per share, not total shareholder accretion, arguing the transaction added approximately $100 million to U.S. dollar reserves, taking total USD reserves to $1 billion.
The debate intensified at BTC Prague on Wednesday when Strategy Executive Chairman Michael Saylor and Strike CEO Jack Mallers engaged in a public discussion over how investors should assess the company's valuation. Saylor has clarified that Bitcoin Per Share tracks common equity growth, while Common Equity Bitcoin Exposure BPS (CEBE BPS) tracks Bitcoin exposure after debt and preferred stock claims. Saylor said CEBE BPS is the conservative risk metric, noting that Strategy's Bitcoin model now includes debt, preferred stock and dividend costs. The gap between Bitcoin per share and CEBE BPS can widen when senior claims grow, making the distinction crucial for investors evaluating the company's true Bitcoin exposure.
CEO Phong Le addressed forced Bitcoin selling scenarios, describing the most realistic case as involving approximately $3.5 billion of preferred obligations due in 2028. If Bitcoin fell sharply and Strategy's share price stayed weak, the company could potentially sell Bitcoin to meet those obligations. However, Le described this as an 'edge case' and emphasized that Strategy could also refinance or convert those obligations into equity. Le said the company would use 'math over ideology' when choosing between selling Bitcoin and issuing stock, noting that if a Bitcoin sale improves Bitcoin per share for common holders, the company may choose that path. The CEO's comments provide clarity on the company's strategic approach to managing Bitcoin holdings while maintaining financial flexibility.
