Strategy CEO Phong Le, in a Bloomberg TV interview, delivered a strong message of confidence in the company’s Bitcoin position, stating that its balance sheet would only face significant debt pressure if BTC fell to the $8,000–$10,000 range. That represents an ~85% crash from current levels around $64,500. “Until that point in time, we feel very secure about the balance sheet,” Le said.
Strategy currently holds between 843,000 and 845,000 BTC, making it the largest corporate Bitcoin holder. Le reaffirmed the company’s goal to accumulate 1 million BTC, and despite two recent minor BTC sales, he emphasized that they have not abandoned their accumulation strategy. The CEO characterized the sales, including a 32 BTC transaction that raised about $2.5 million, as a systems test rather than a distress signal, meant to verify internal liquidation processes.
A more immediate concern is the company’s preferred stock, STRC, which is designed to maintain a $100 par value and pay a high dividend. STRC fell below $75 in late June before recovering to around $90, limiting Strategy’s ability to issue new shares to fund Bitcoin buys. Le personally purchased $1 million worth of STRC to signal his conviction in its recovery to par. To rebuild dollar liquidity, the company raised its cash reserves to approximately $3 billion through a recent share sale, prioritizing the restoration of STRC’s nominal value.
Looking ahead, Strategy is targeting an $80 billion capital raise via a mix of debt and equity to fuel further Bitcoin purchases and cover dividend obligations without selling BTC. Le dismissed criticism that the company wields excessive influence over Bitcoin’s market, noting that its holdings represent only 4% of total supply against a daily trading volume exceeding $30 billion. MSTR stock closed Tuesday up nearly 6% at $97.58, though it remains down 36% year-to-date.
Le underscored the company’s resilience, pointing to its survival through the 2022 bear market and this year’s challenges, and declared, “We’re not going anywhere. Our goal is to become the biggest buyer of Bitcoin for the foreseeable future.”
