Strategy CEO Highlights Increased Flexibility in Bitcoin Acquisition Strategy
Strategy's Enhanced Flexibility in Bitcoin Investment
Strategy CEO Phong Le has announced that the firm now enjoys "more flexibility than ever" in its bitcoin acquisition efforts. This is attributed to a robust capital structure featuring long-term debt, opportunistic equity access, and a lack of short-term refinancing pressures.
Capital Structure and Market Strategy
During a recent episode of the "What Bitcoin Did" podcast, Le explained to host Danny Knowles that the company's ability to raise funds through both debt and equity plays a crucial role in its long-term bitcoin strategy. He emphasized that capital-market access is key to consistently increasing the firm's bitcoin holdings across various market conditions.
Le highlighted the strategic engineering of the company's balance sheet to avoid liquidity issues while maintaining opportunities for issuing capital. "Our capital stack is very strong," he stated, noting that the first debt maturity is not until December 2025, allowing for opportunistic maneuvers.
Strategy's balance sheet includes several long-dated convertible notes with minimal short-term dilution risk. This structure enables the firm to leverage both equity and debt markets, depending on prevailing conditions.
Market Position and Future Plans
The company, which rebranded from MicroStrategy to Strategy in February 2025, holds over 158,000 BTC. Le noted that Strategy's shareholder base is aware of its transition from a traditional software company to a hybrid model that integrates enterprise analytics with a bitcoin-focused treasury strategy.
Despite some investor concerns about valuation, particularly during bitcoin price volatility, Le asserted that the firm's strategy has been validated through multiple cycles. He emphasized the company's expertise in capital markets as a key factor in its success.
Strategy plans to continue allocating excess cash flow from its software business into bitcoin, assessing capital-market conditions to decide on equity or debt issuance as needed. "As long as we execute on software, bitcoin, and in capital markets, our story remains compelling," Le concluded.
Strategy's Class A shares closed at $17.18, experiencing a slight uptick, although down 41% year-to-date compared to a 3.14% decline in bitcoin.
CoinDesk analyst James Van Straten speculated that the market might challenge Strategy's enterprise valuation or push its stock below the firm's bitcoin cost basis, but expressed confidence that both bitcoin and Strategy would rally once the company navigates its current convertible note structure.