Phong Le, CEO of MicroStrategy, the company with the world's largest institutional Bitcoin treasury, explained the mechanism behind the company's $60 billion BTC investment, their leveraged buying strategy, and how they continue to accumulate Bitcoin regardless of market conditions.
MicroStrategy CEO Phong Le appeared on the What Bitcoin Did podcast to share details about the company's aggressive BTC strategy. He explained how MicroStrategy, which evolved from its software company roots into the world's largest Bitcoin treasury company, has grown through preferred stocks and smart debt instruments, and highlighted the new financial products they offer investors.
Le explained that the company began with a “buy and hold” strategy in August 2020, converting idle cash on its balance sheet into Bitcoin, but the strategy evolved over time. He explained that initially, they used only their cash reserves, but realized this would be too slow to reach the company's current $40-45 billion Bitcoin position.
“Initially, we were using only cash, but then we leveraged the company with convertible notes, secured notes, and now preferred stocks. Just like we got people used to Bitcoin-backed borrowing, we're now getting people used to Bitcoin-backed lending, and we're just getting started,” Phong Le said.
Responding to the question, “Will MicroStrategy sell Bitcoin?”, one of the biggest questions in the market, Le said that this would only be a “last resort.”
“If the company's shares trade below NAV and we have no access to other capital to cover dividend payments, mathematically it would be correct to sell BTC. But that would be a necessity. Our primary goal is always to increase BTC yield,” Le said.
Phong Le added that he believes Bitcoin can generate 40-50% annual returns in the next 4-5 years and predicts that all major companies will hold some BTC on their balance sheets in the future.
*This is not investment advice.
