Strategy CEO Phong Le: Only Two to Three Bitcoin Vault Companies in the U.S. Will Survive and Succeed
Strategy CEO Phong Le told Natalie Brunell that ultimately only two to three Bitcoin vault companies in the U.S. will survive and succeed.
In an interview on Coin Stories, Phong Le described this sector as a competition of capital, execution, and long-term Bitcoin strategies, rather than a short-term narrative competition. He emphasized that Strategy is already the largest corporate Bitcoin holder globally, with approximately 845,000 BTC, accounting for about 4% of the total supply, and is about 20 times larger than the next vault company.
In recent years, the company has transitioned from a single vault model to a digital capital platform, launching perpetual preferred stock products like STRC, and actively sold some Bitcoin during the bear market in 2026 to bolster its USD reserves. The reserves were once increased to the scale of several billion dollars to cover preferred stock dividends and interest for about two years, while also reducing net debt to nearly zero.
After pausing Bitcoin purchases for about 10 weeks, Strategy resumed buying, using the premium from issuing common stock to repurchase Bitcoin. Phong Le stated that buying and selling are not triggered by the price of Bitcoin itself, but by capital costs, mNAV, and whether the balance sheet is favorable, noting that the amount sold, about 7,000 BTC, is less than 1% of total holdings.
Michael Saylor described the company's long-term positioning as the JPMorgan of the digital capital space: providing market making, liquidity, and integrating Bitcoin into traditional capital markets. The company also prioritizes common stock buybacks over merely increasing dividends and continues to engage in discussions regarding index inclusion with MSCI and others.
Market mechanisms indicate that funds are shifting from newly established U.S. Bitcoin vault companies to a few that can sustainably finance at a premium, maintain USD coverage, and increase the number of Bitcoin per share. Buyers are institutions and retail investors seeking leveraged Bitcoin exposure and preferred stock dividends; sellers are latecomers unable to withstand volatility, dividend payments, and refinancing costs. Event-driven factors stem from index rules, pressure on credit products, and bear market liquidity tests, benefiting established leaders with scale and financing channels, while smaller vault companies relying solely on narratives for fundraising and lacking cash buffers are under pressure.
Approximately 200 digital asset vault companies have emerged in the public market, but most are significantly smaller than Strategy and have not yet formed equivalent preferred stock and buyback mechanisms.
Source: Public Information
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MicroStrategy converted nearly all of its treasury into Bitcoin in August 2020, subsequently increasing its holdings from tens of thousands to over 800,000 through convertible bonds, preferred stock, and premium offerings. Phong Le joined in 2015 and became CEO in 2022, initially favoring a 5% to 10% allocation, later acknowledging Saylor's full allocation strategy as correct. The company faced multiple challenges during the 2022 bear market, the 2026 STRC pullback, and brief Bitcoin sales, but survived near-death experiences due to its capital structure.
The funding path transforms public market equity and preferred stock premiums into Bitcoin per share, then uses Bitcoin as collateral for credit products to deliver yields to institutions and retail. Selling Bitcoin first to replenish USD reserves in 2026, then issuing stock at a premium to buy back Bitcoin, shifts from a "never sell" strategy to a "dual operation on the balance sheet": cash is needed for dividend payments, and issuing stock to buy Bitcoin is only worthwhile when mNAV is above 1. Strategic motivation is to secure a permanent capital entry point rather than betting on a single price.
Similar paths can be seen in early leveraged real estate trusts, shipping companies, and some mining stocks: first accumulating assets through high premium financing, then differentiating in interest rate and credit cycles. Overseas entities like Metaplanet are still expanding due to different regulations and shareholder structures, while the U.S. is closer to a knockout stage. The industry has transitioned from a replication wave in 2024-2025 to a control and clearing phase, where leaders set prices based on scale and financing rights, while the tail maintains valuations through narratives.
The structural change represents capital concentration. With a fixed total supply of Bitcoin, those who can finance at costs lower than asset appreciation will absorb the equity premiums and holdings of other companies. The mechanism requires credit products to have USD coverage, with indices and market makers providing liquidity only to a few targets; latecomers cannot afford dividends or issue premium stock, ultimately handing over Bitcoin and shareholders to the two to three companies that can survive the complete cycle.
ABAB News · Law of Cognition
The final competition in the vault sector is about financing rights, not slogans.
Perpetual assets must also survive the payment cycle.
At the end of the replication wave, scale itself becomes a barrier.