Key Highlights
- Strategy’s CEO Phong Le states the company maintains strong confidence unless Bitcoin plummets to $8,000ā$10,000 ā representing an approximately 85% decline from present levels.
- MSTR shares finished Tuesday’s session up nearly 6% at $97.58, though the stock remains down 36% for the year.
- The company’s preferred shares STRC have struggled below their $100 nominal value, dropping beneath $75 in late June before rebounding to roughly $90.
- Le demonstrated conviction by purchasing $1 million in STRC shares personally.
- The company is pursuing an ambitious $80 billion capital raising initiative while working toward a target of 1 million BTC in holdings.
In a Tuesday interview with Bloomberg TV, Strategy’s CEO Phong Le provided investors with specific clarity regarding the company’s risk tolerance for its Bitcoin-centric business model. His message: the breaking point sits much further down than many might anticipate.
According to Le, Strategy wouldn’t face serious concerns about its debt obligations unless Bitcoin tumbled to the $8,000ā$10,000 price range. With Bitcoin trading near $64,500 during the conversation, such a scenario would require an approximately 85% collapse.
“Until that point in time, we feel very secure about the balance sheet,” Le stated.
MSTR shares concluded Tuesday’s trading session with a gain of nearly 6%, closing at $97.58. However, the stock continues to struggle with a 36% year-to-date decline and has fallen 78% compared to its price one year ago.
The company’s Bitcoin treasury currently contains between 843,000 and 845,000 BTC, establishing it as the top Bitcoin holder among public corporations. Strategy’s ambitious target calls for accumulating 1 million BTC ā roughly 18% above current holdings.
Addressing the STRC Challenge
The immediate concern for Strategy isn’t Bitcoin’s price fluctuations ā it’s the performance of STRC, the company’s preferred equity instrument.
STRC was structured to maintain a $100 nominal value while distributing steady dividends ā presently yielding between 11.5% and 13% annually ā providing Strategy with a capital source for Bitcoin acquisitions. However, the instrument dropped below par in April and sank under $75 during late June before recovering toward $90.
When STRC trades beneath its $100 par value, Strategy’s capacity to issue additional shares and deploy the capital for Bitcoin purchases becomes constrained. This represents a significant obstacle for an organization whose fundamental strategy revolves around BTC accumulation.
Le’s solution focuses on a clear objective: rebuilding dollar-denominated cash reserves. “We’ve learned over the last couple of months that having that liquid access to U.S.-dollar capital is quite important,” he explained.
He also demonstrated personal commitment by investing $1 million of his own capital into STRC, signaling his conviction that the instrument will return to par value.
The $80 Billion Capital Initiative
Beyond resolving the STRC situation, Le has set his sights on an even more ambitious goal.
Strategy plans to secure more than $80 billion through a combination of debt instruments and equity offerings, which would finance additional Bitcoin acquisitions and satisfy dividend commitments without liquidating BTC holdings.
During late May or early June 2026, Strategy liquidated 32 BTC ā marking the company’s first Bitcoin sale since December 2022 ā generating approximately $2.5 million. Le characterized this as a procedural verification rather than a sign of distress, explaining the company needed to confirm its internal Bitcoin liquidation mechanisms function properly.
Strategy’s average acquisition cost for its existing Bitcoin portfolio stands at approximately $61.81 billion.
Another critical indicator under investor scrutiny is the mNAV ā measuring the ratio between MSTR’s market capitalization and the value of its Bitcoin treasury. This metric briefly fell below 1 at June’s conclusion and currently registers at 1.02.
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