- Strategy CEO states that a great capital structure provides the company with a way to continue buying Bitcoin.
- Long-term borrowing and equity availability will enable Strategy to avoid the pressure of refinancing during unstable market conditions.
- Strategy expects its capital plan to look stronger as its Bitcoin approach remains successful over the long-term.
According to Strategy CEO Phong Le, the firm has the space to keep buying Bitcoin. He described how the company made its balance sheet to lessen the strain of refinancing and expand its capital raising possibilities.
CEO Explains Strong Capital Position of Strategy
Le explained this during the “What Bitcoin Did” podcast interview. He said the company’s structure gives it a strong competitive edge in today’s market.
Le further claimed that Strategy has long-term debt positions, which eliminates short term maturity risks. He further explained that the first significant maturity is due next month.
By doing this, the company can afford not to worry about being liquidity when volatile times happen. Le also pointed out that market sentiment will determine whether Strategy can raise money via equity or use a convertible note.
He explained that this strategy is one of the factors in the long-term Bitcoin plan of Strategy. Le also emphasized that the identity of the company is clear to its shareholders.
According to him, they see Strategy as a hybrid business, integrating enterprise software with a Bitcoin treasury model. He says that this change has taken a central role in the perception of the company in the eyes of the populace market.
Also Read | Bitcoin’s (BTC) Massive Warning: Strategy’s $25K Scenario Sparks Debate
Strategy Will Continue With Its Bitcoin Accumulation
Any concerns over valuation were pushed back by Le. He explained that the model has been tested by the company during a number of Bitcoin cycles. Also, its ability to maintain a constant influx of new capital confirms this point.
There are over 158,000 BTC on the balance sheet of the firm. Le also indicated that the company will keep increasing its position. He indicated that any excess cash generated by its software business would be used by the company to buy more Bitcoin.
He further said that Strategy will always keep an eye on the debt and equity markets to select the most favorable terms. Strategy’s stock (MSTR) was $17.18 on Friday after modest gains in the last day.
Strategy is Optimistic About its Long-Term Model
Le added that the company believes that the market would appreciate the power of its capital strategy when the existing note structure proves sustainable. He observed that the long-term plan of the firm will not be modified even during Bitcoin volatility.
In the meantime, Strategy’s model may be subject to more tests in case Bitcoin trades significantly lower than its recent peak values. However, Le restates that Strategy can fund its operations during challenging market conditions.
Also Read | MicroStrategy Holds 650,000 BTC, Serving as Critical Market Hedge
