Key Takeaways:
Strategy Chief Executive Officer Phong Le said the company would not face balance sheet concerns unless Bitcoin falls to $8,000 to $10,000, disclosing a specific price floor for the first time.
"When Bitcoin gets down closer to $8,000 to $10,000 is when we're going to have to consider some of the risk associated with our debt," Le said in a Bloomberg TV interview Tuesday. "Until that point in time, we feel very secure about the balance sheet."
The threshold represents an approximate 85% decline from Bitcoin's price of roughly $64,700 at the time of the interview. Strategy holds between 843,000 and 845,000 BTC, valued at about $54 billion, making it the largest identified corporate holder with roughly 4% of the 21 million Bitcoin that will ever exist. The company carries $6.75 billion in debt and $15.5 billion in preferred securities.
The disclosure comes as Strategy's preferred shares, known as Stretch or STRC, trade around $89 — below their $100 par value — preventing the company from issuing new shares to fund additional Bitcoin purchases. Le said the firm will resume buying once STRC returns to par, but acknowledged he is "unsure" how long that will take.
The company has paused Bitcoin purchases since late June, shifting focus to building a $3 billion cash reserve — enough to cover two years of dividend payments — through a $467 million common stock sale. Le described the move as part of a broader evolution "from being a Bitcoin treasury company to a full digital capital platform."
STRC dipped below $75 in late June before recovering to roughly $90. Le personally purchased $1 million of STRC shares to signal confidence in the security's return to par value. "We've learned over the course of the last couple months that having that liquid access to U.S. dollar capital, whether it be one, two, three years, is quite important," he said.
The company's mNAV ratio — comparing MSTR's market capitalization against the value of its Bitcoin reserves — briefly fell below 1.0 at the end of June and currently sits at 1.02. MSTR shares finished Tuesday up nearly 6% at $97.58, though the stock remains down 36% year-to-date and has fallen more than 77% over the past year.
Strategy sold 32 BTC in late May — its first Bitcoin disposition since December 2022 — generating approximately $2.5 million. Le characterized the sale as a systems verification exercise rather than a financial necessity.
Looking ahead, Le outlined plans to raise more than $80 billion through combined debt and equity offerings to fund continued Bitcoin acquisitions and cover dividend payments without requiring BTC liquidations. The company's target is to accumulate 1 million BTC, roughly 18% above current holdings. On prediction market Myriad, users place just a 13% probability on Strategy reaching that milestone before 2027.
This article is for informational purposes only and does not constitute investment advice.
