New MicroStrategy (MSTR) CEO Phong Le backed up Michael Saylor's decision to hold bitcoin on the company's balance sheet.
Speaking Tuesday at a conference sponsored by investment bank Canaccord Genuity, Le said that prior to first purchasing bitcoin (BTC) in August 2020, MicroStrategy considering purchasing Treasurys, corporate bonds, gold, commodities, real estate and even artwork.
Digital assets, however, kept popping into management's conversations, Le said. “We at our core are inventors, we’re innovators,” he said, explaining why bitcoin won out.
Le reminded the audience that in September 2020 MicroStrategy ran a Dutch auction, offering those investors not interested in the bitcoin strategy a way out via a 15% premium to the stock price at that time. Only $60 million in stock was tendered, which was far short of the $250 million the company had expected, Le said.
Le said the bitcoin strategy has boosted shares and trading volume, and helped MicroStrategy make a transition from solely being a “sleepy software company.”
The company now owns about 129,000 bitcoins, or nearly $3 billion worth at the current price of $23,000.
Le was moved into the CEO spot at MicroStrategy last week after Saylor stepped down to become executive chairman, with a sole focus on the company's bitcoin strategy.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish, a cryptocurrency exchange, which in turn is owned by Block.one, a firm with interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets including bitcoin and EOS. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.