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Strategy CEO @phongle explains why the company sold $2.5 million in $BTC only to turn around and spend $100 million on more of the cryptocurrency to @scottmelker on today's Daily Wolf.
"I do not believe I need a cash reserve. But our debt holders and Stretch holders feel it's less risky to have one. If Bitcoin crashed 90%, we'd have two and a half years"
Strategy CEO Phong Le on why the company plans on keeping the cash reserve
"Mathematically I do not believe I need a cash reserve. But from a risk perspective, to satisfy our four stakeholders, common, preferred, Bitcoin and debt holders, especially debt holders and Stretch holders, they feel it's less risky to have a cash reserve. If Bitcoin were to crash 90%, we would have two and a half years"
"We took the 2.25 billion down to north of 700 million. Why did we do it? Because at that point in time, that was the best way to buy back our convertibles of one and a half billion dollars. We've also said we're going to bring it right back up, and we've done it $100 million at a time"
"We bought $100 million in Bitcoin last week right after we sold $2.5 million. Nobody talks about the purchase of $100 million. They talk about the sale of $2.5 million. We'll bring the cash reserve back up and refresh it over time"
"We have outperformed Bitcoin by 50% in the last six years. And we have outperformed every company in the MAG7 except for NVIDIA"
Strategy CEO Phong Le on what the market is getting wrong about Strategy
"If you believe in Bitcoin, we are amplified Bitcoin"
Strategy CEO Phong Le lays down the three reasons behind the Bitcoin sale
"We did it to inoculate the market. To test our processes. And to give ourselves the opportunity for future tax loss harvesting. It is really that simple"
"We did not sell it because we needed to meet our cash dividend obligations. If we did we would have sold a lot more than $2.5 million"
"We have $52 billion worth of Bitcoin on our balance sheet. At some point we have to put it to work. Selling less than 1% of 1% was a reasonable place to start"