Strategy CEO: We've been adding to our US dollar reserve

STRATEGY TRIMMING, ACCORDING TO REGULATORY FILINGS THE WORLDS LARGEST CORPORATE HOLDER OF THE DIGITAL TOKEN SOLD MORE THAN 1,600 BITCOIN FOR MORE THAN $108 MILLION TOTAL AND SOLD THE BITCOIN AT AN AVERAGE PRICE OF $64, 200 AND THE SECOND CONSECUTIVE WAIT THE COMPANY SOLD AND MARKS THE 7TH WEEK IN A ROW ITS NOT MADE ANY BITCOIN PURCHASES. LET'S FIND OUT WHAT THE PLAN IS JOINING ME NOW IN A FOX BUSINESS EXCLUSIVE, STRATEGI EXCLUSIVE FO NG LI. I GET THE SELLING BECAUSE YOU'VE GOT TO RAISE CASH BECAUSE YOU'VE GOT THE PREFERRED SHAREHOLDERS THAT YOU NEED TO MAKE SURE YOU PAY THEIR DIVIDEND BUT WHY NO PURCHASING OF BITCOIN AT ALL? >> YEAH, LET'S START WITH SOME PERSPECTIVE LIZ. WE NOW HAVE AND WITH BOUGHT A LOT THROUGHOUT THE COURSE OF THE YEAR AND INCREASED HOLDINGS 25% AND WE'RE NOW THE JPMORGAN OF THE DIGITAL ECONOMY AND WE'LL GET BACK TO BUYING MORE BITCOIN THROUGHOUT THE COURSE OF THE YEAR. LIZ: DOES THE PRICE HAVE TO GO DOWN OR YOU WANT TO SEE IT GO UP RIGHT NOW IT'S AT 63, 950 PER BITCOIN. >> IT'S NOT REALLY PRICE- RELATED. WHAT WE'VE BEEN DOING OVER THE COURSE OF THE LAST FEW MONTHS IS ADDING TO OUR U.S. DOLLAR RESERVE SO WE'VE ADDED 17 5,000 BITCOIN THIS YEAR, SOLD 7,000, AND WE'VE ACTUALLY INCREASED OUR U.S. DOLLAR RESERVE TO 4.75 BILLION FROM ABOUT 800 MILLION. SO THAT'S BEEN OUR FOCUS OVER THE LAST FEW WEEKS, AND THEN WE'LL GET BACK TO BUYING BITCOIN AT SOME POINT IN TIME. IT'S NOT PRICE-RELATED BUT ABOUT WHAT WE CAN DO TO OUR SHAREHOLDERS. LIZ: IT WAS LAST OCTOBER THAT BITCOIN HIT 126,000, OBVIOUSLY ITS BEEN CUT IN HALF AT 64,000 AT THE MOMENT. THIS HAS LASTED KIND OF A LONG TIME AND COME UP OFF THE FLOOR, BUT THAT SAID, HOW MUCH LONGER DO YOU ANTICIPATE THIS AND WOULD YOU CALL IT A CRYPTO WINTER? >> YEAH, I THINK IT'S REASONABLE TO CALL IT A BEARISH CYCLE. ITS BEEN ABOUT EIGHT MONTHS AND IF YOU GO BACK TO 2022, THE LAST TIME WE HAD PROLONGED BEAR CYCLE THAT STARTED IN ABOUT MAY OF 2022 AND IT REALLY WENT INTO THE BEGINNING OF 2023, SO AN EIGHT-TO-12-MONTH DOWNTURN. LIZ: NEVER GUARANTEED, THAT HAS BEEN THE HISTORY OF IT SINCE THE BIRTH OF BITCOIN. THE QUESTION BECOMES FOR INVESTORS WHO BOUGHT MICRO STRATEGY AT MORE THAN $400 A SHARE AND NOW WE LOOK AT IT AT $97 A SHARE, WHAT DO YOU SAY TO THOSE INVESTORS WHO ARE OUT THERE SAYING, THIS IS A SIGN OF FINANCIAL DISTRESS. >> YEARS OF DIVIDEND COVERAGE. WE HAVE $55 BILLION WORTH OF BITCOIN ON OUR BALANCE SHEET. NONE OF THAT SIGNALS FINANCIAL DISTRESS. I UNDERSTAND, TO OUR COMMON SHAREHOLDERS, THE STOCK HAS BEEN DOWN. I LOOK AT THE HISTORY SINCE WE'VE BEEN BUYING BITCOIN, SINCE AUGUST OF 2020 BITCOIN HAS BEEN UP 33% WE'VE BEEN UP 42%, RIGHT? SO, ANYONE WHOSE INVESTING IN BITCOIN KNOWS IT'S A LONG TIME HORIZON ASSET WHICH HAS HIGH-RETURNS HIGH-VOLATILITY AND IF YOU INVEST IN MSTR, AMPLIFIED BITCOIN, WE HAVE HIGHER RETURNS, HIGHER VOLATILITY AND THOSE ARE LOOKING FOR A SHORTER DURATION ASSET, WITH LOWER VOLATILITY. THAT'S WHY WE CREATED STRC. IT IS, YOU KNOW, YOU DO HAVE TO HAVE THE STOMACH FOR THE VOLATILITY AND LONGER DURATION TO BE A COMMON SHAREHOLDER OF OURS. LIZ: YEAH, ITS SORT OF BUYER BEWARE. THIS IS A ROUGH RIDE. IT'S NOT SMOOTH. MICHAEL SAILOR WHO OF COURSE IS THE CHAIRMAN AND THE CEO, HE RECENTLY POSTED ON X THIS. >> THE BIG DIFFERENCE BETWEEN OUR BUSINESS FOUR YEARS AGO IS WE ARE BASICALLY BUYING BITCOIN, ISSUING DEBT AND BUYING MORE BITCOIN, OR LEVERED BITCOIN AND WHAT'S CHANGED NOW IS WE HAVE A LOT MORE OPTIONS AND WE CAN SELL U.S. DOLLARS, WE CAN SELL BITCOIN, WE ARE SELL OUR PREFERRED, SELL OUR EQUITY AND BUBUY ALL THOSE THINGS SO BUSINS IS JUST A LOT MORE OPTIONS. LIZ: IS IT A DECISION MADE BETWEEN YOU TWO ABOUT WHETHER TO SELL SOME BITCOIN EACH WEEK OR IS IT YOU? IS IT MICHAEL SAILOR? >> WE TALK THREE-TO-FOUR TIMES A DAY AND WE CONSULT WITH OUR FINANCE TEAM AND WE LISTEN TO OUR SHAREHOLDERS BUT WE TALK QUITE A BIT SO IT'S A JOINT DECISION AND OF COURSE THE BOARD HAS GUIDELINES AROUND WHAT WE CAN DO. LIZ: WE'VE JUST GOT NOT TOO MUCH TIME LEFT LIKE 30 SECONDS BUT THE CLARITY ACT. WHAT ARE YOU HEARING? THE SENATE HAS NOT PASSED IT AND IT WOULD G GIVE SOME MUCH-WANTED GUIDANCE AND REGULATION TO THE INDUSTRY WHICH IS ACTUALLY ASKING FOR IT. >> YEAH, LOOK. I THINK HAVING CLARITY COMING FROM THE GOVERNMENT, ESPECIALLY FROM CONGRESS, BE POSITIVE RIGHT NOW AND IT LOOKS LIKE THEY ARE GOING TO VOTE FOR THIS COME MID- SEPTEMBER, SO I THINK THERE'S POSITIVE COMING OUT OF THAT REGARDLESS THERE'S GOOD RULEMAKING COMING OUT OF THE SEC THAT WILL PROGRESS BITCOIN CLARITY. LIZ: FONG LI, CEO OF STRATEGI. GREAT TO HAVE YOU THANK YOU VERY MUCH HERE COMES THE BELL >> [ CLOSING BELL RINGING ] LIZ: KIND OF A MEANDERING MONDAY