Strategy Inc (MSTR) CEO Phong Le thinks the biggest banks in America have finally gotten the memo on Bitcoin (BTC), and they're scrambling to catch up. In a conversation with podcaster Natalie Brunell, Le predicted that major financial institutions will roll out comprehensive crypto services within the next two to three years.
The Banks Are Worried About Losing You
According to Le, the shift isn't really about banks suddenly loving cryptocurrency. It's simpler than that: they don't want customers pulling money off their platforms. "They want to be able to offer their customers native services with Bitcoin so they don't take the money off platform," Le explained.
Le sketched out how traditional finance will evolve into crypto territory across three distinct phases. First comes basic custody and buying/selling services—the table stakes. Then banks move into Bitcoin lending and yield generation products. Finally, they'll launch digital money and Bitcoin-backed securities, essentially treating crypto like any other financial asset.
Strategy's New High-Yield Play
Le also highlighted Strategy's newly introduced preferred security called Stretch (STRC), which aims to blow past traditional savings account returns. STRC targets an annualized return of 10.75%, paid monthly, while maintaining price stability. Unlike MSTR common stock, this instrument is positioned as a high-yield alternative to money market funds.
The tax structure is particularly interesting: dividends are classified as return of capital, which means taxes get deferred until you actually sell the underlying asset. That's a meaningful advantage for investors looking to compound returns without annual tax drag.
Addressing the Bitcoin Sale Fears
Le also tackled persistent rumors that Strategy might be forced to liquidate its Bitcoin holdings to meet financial obligations. He pointed to the company's freshly established $1.4 billion cash reserve, which covers dividend payments for approximately 21 months. That buffer, Le argued, makes forced crypto sales during market downturns extremely unlikely.
While Le acknowledged the company would sell Bitcoin if absolutely necessary to avoid default, he stressed that the reserve makes that scenario remote. "We do not expect to ever have to sell our Bitcoin," Le stated clearly. "That's how we'll run our business."
Le dismissed recent concerns about MSCI potentially excluding digital asset treasury companies from indices as "antagonistic" and shortsighted. He characterized the tension as temporary noise, urging investors to keep their eyes on the bigger picture: Bitcoin's long-term integration into the global banking system.