The CEO of MicroStrategy, Phong Le, has characterized Bitcoin (BTC) as the "United States of money." According to the on-chain analytics firm Arkham, Le's $1 million investment in the company's preferred stock is now back at the break-even point.
In a recent filing, it was revealed that Le purchased 11,000 shares of Stretch preferred stock (STRC) through a family trust, paying an average price of $90.80 per share, totaling approximately $998,756. He indicated that this move is a long-term investment rather than a quick trade.
Market Dynamics and Preferred Stock Performance
This purchase occurred at a price lower than the stated $100 value of STRC. The company designed STRC to trade around this par value, adjusting dividends monthly to stabilize the price. Since then, the annual dividend for STRC has increased from 9% to 12%, helping shares move closer to their intended value.
As a result, Arkham now calculates Le's position as having reached break-even. The importance of this recovery is significant because STRC supports a preferred-stock stack valued at over $13 billion. In addition, MicroStrategy has recently announced a new sales policy for Bitcoin holdings, which may be utilized to fund these dividends. Le commented, "I bought $1 million of $STRC today. Will hold it until it reaches par, likely longer," in a recent post.
Why Bitcoin Holds Significance for Le
Le elaborated on his perspective regarding Bitcoin, highlighting its characteristics as a form of money governed by clear rules and a finite supply, which cannot be manipulated by any government. He argues that Bitcoin acts as a safeguard against inflation, censorship, and political interference. "Bitcoin is the United States of money. It aims to achieve for money what the American Constitution sought for governance: a system built on transparent rules rather than individual discretion… But more than that, Bitcoin embodies hope," he stated.
Le connects this conviction to his own background, recalling his family's refugee journey from Vietnam as a testament to the belief that individuals should have control over their finances. He anticipates that Bitcoin could emerge as a global reserve asset within the next decade, a prediction backed by his leadership of MicroStrategy, which currently holds 818,334 BTC, making it the largest corporate holder of Bitcoin.
Founder Michael Saylor pioneered this treasury strategy back in 2020, advocating for Bitcoin in corporate portfolios. Le also points to major financial institutions like Goldman Sachs and Citibank introducing Bitcoin-related services as indicators of a broader trend.
However, not everyone is convinced of Bitcoin's trajectory. Recently, Bitwise reported that MicroStrategy may no longer be considered the dominant buyer of Bitcoin, citing a quarterly loss of $12.5 billion as the market experienced a downturn.
