At a recent appearance at the MIT Bitcoin Expo, Strategy’s CEO, Phong Le, passionately advocated for incorporating Bitcoin into modern corporate treasury strategies. As a trailblazer in this space, Strategy, listed on NASDAQ as MSTR, holds over 528,000 BTC, making it one of the most prominent and potentially successful public companies to leverage Bitcoin as a primary reserve asset.
Le proudly stated to the attendees, “We outperformed the entire Nasdaq, the entire S&P 500, the entire Mag Seven… and we even outperformed Bitcoin itself.”
While Michael Saylor, Strategy’s Chairman, set the philosophical stage for utilizing Bitcoin in corporate operations back in 2020, Le’s presentation focused on the real-world execution and financial outcomes. His talk was both a challenge and a practical example, urging business leaders to rethink long-held financial beliefs and to consider revamping balance sheets in this new Bitcoin era.
### Corporate Stagnation and Bitcoin as a Solution
During the first day of the MIT Bitcoin Expo, Le started by dissecting the current performance issues within corporate America. Out of the 35 million U.S. companies, only the upper echelon, largely composed of S&P 500 firms, meets market expectations. The vast majority are lagging. “Almost every other company is not performing,” Le emphasized.
He criticized the entrenched financial ideologies perpetuated by MBA programs, top consultancies, and Wall Street firms, which still preach the same strategies: optimizing the income statement, investing in traditional assets, and sticking to quarterly perspectives. This has led to widespread underperformance. As Le put it, “All they can do is follow the S&P 500,” highlighting how even private equity, venture capital, and hedge funds rarely surpass this benchmark.
Le’s main argument isn’t about a lack of skill—it’s about a lack of creativity and willingness to think differently.
### Strategy’s Approach: Transforming Balance Sheets with Bitcoin
What distinguishes Strategy, according to Le, is its strategic use of the balance sheet. Unlike many companies that let cash sit in low-yield bonds or commodities like gold, Strategy took a different route with Bitcoin.
He posed a rhetorical question, “Why wouldn’t you, as a company, want to leverage your balance sheet like we do? It just makes sense to earn returns from it.”
Le explained that Bitcoin offers more than just potential gains. It provides structural advantages such as 24/7 trading, freedom from central bank policies, and immediate global liquidity. In contrast, traditional capital markets are open “252 days a year, 6.5 hours a day—just 19% of the time.”
Strategy has fully embraced this by updating its Bitcoin holdings in real-time. “We display our results daily, even every fifteen seconds on our website,” Le shared.
### Revisiting Accounting in a Bitcoin-Dominated World
A significant hurdle for companies adopting Bitcoin is reconciling traditional accounting standards with the nature of a constantly traded asset. The current accounting frameworks were built for quarterly updates and slow-moving financial instruments, not for digital assets that are globally active 24/7.
Le noted, “Accounting policies update every five years, quinquennially. They simply don’t accommodate Bitcoin.”
Under current GAAP rules, Bitcoin is classified as an intangible asset, leading to write-downs when its price falls but no upward adjustments when it rises—skewing financial assessments.
To bridge this gap, Strategy follows a more open approach. “We keep our results transparent, updating them every fifteen seconds,” Le reiterated. This practice aligns with Bitcoin’s continuous nature and demonstrates to the market that Strategy operates on a different set of principles.
Rather than waiting for institutional frameworks to evolve, Strategy is pioneering how Bitcoin-focused corporate performance should be evaluated.
### The Phenomenal Rise of MSTR Stock
Adopting a Bitcoin-centric treasury strategy has made MSTR stock “the most performant, most volatile, with the highest volume and most intriguing stock in the U.S.,” according to Le. It has consistently exceeded traditional benchmarks, not solely due to Bitcoin’s appreciation, but because Strategy has fully embraced its identity as a Bitcoin-centric public entity.
Le also pointed out other companies following suit, such as Metaplanet, Semler Scientific, and KULR Technology Group, all of which have outperformed the S&P 500 and Bitcoin by employing similar treasury strategies. “This is a strategy that can be adopted,” he commented. “Others should consider doing the same.”
### A Call for Boldness in Corporate Strategy
Le concluded by urging executives and investors to challenge existing norms. Strategy’s triumph didn’t arise from following the pack; it came from daring to break away from it.
“It requires courage, original thinking, independent reasoning, and bravery. And, of course, it takes Bitcoin,” he remarked.
As pioneers in making Bitcoin a fundamental part of their balance sheet, Strategy, under the guidance of Michael Saylor’s vision and Phong Le’s leadership, is redefining possibilities in corporate finance.
Or as Le succinctly put it, “Bitcoin allows corporations to break free from mediocrity.”
Disclaimer: This content is crafted for Bitcoin For Corporations and serves informational purposes alone. It should not be construed as an invitation or encouragement to acquire, purchase, or subscribe to any securities.
