Strategy CEO Says Banks Pushed Firm To Selling Bitcoin: ‘Never Sell’ Was Never A Rule

Strategy CEO Phong Le said that banks pushed the company to show it was willing to sell Bitcoin before treating the asset as usable collateral.

• Le said Strategy’s “never sell” stance was never a formal company policy and that the firm would sell Bitcoin if needed to protect the business. 
• Strategy sold 7,000 BTC this year but added about 170,000 BTC net, increasing its total holdings by 25%. 
• Le also pushed back on the idea that investors must thoroughly understand Bitcoin's workings to hold it, calling the idea "elitist." 

Strategy (MSTR) Chief Executive Officer (CEO Phong Le said banks were unwilling to treat the company's Bitcoin (BTC) holdings as collateral, while Strategy maintained that it would never sell them. 

Le said in an interview with WOLF Financial, published on Friday, that the situation pushed the company to change its approach. Strategy later introduced a digital credit capital framework that included holding more cash, buying back preferred securities, and selling Bitcoin if needed to support its common stock and preferred shares. 

Le said that the lenders asked why they should extend credit against Bitcoin that the company had pledged never to sell. “They wanted to see liquidity and the willingness to sell that Bitcoin,” he said. "That's what we showed." As of September 7, Strategy holds about 845,050 BTC.