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Strategy CEO says Bitcoin buys restart when Stretch preferred stock hits par
Strategy paused purchases since late June, raised $467 million in common stock, and built a $3 billion cash reserve to cover about two years of dividends, while warning of added debt risk if BTC falls to $8,000 to $10,000.
Strategy CEO Phong Le said Bitcoin treasury company Strategy will resume buying once its Stretch (STRC) preferred shares recover to their $100 par value, a condition Le linked to the firm being able to issue more of the stock profitably. The company paused Bitcoin purchases since late June and is using a retooled financing plan built around restoring STRC to par.
Le said Strategy raised $467 million through a common stock sale to increase its cash reserve to $3 billion, which the company said is enough to cover two years of dividend payments. He also said the company may keep adding to its U.S. dollar reserve as it works through the process of getting Stretch back to par.
The CEO warned that if Bitcoin were to drop into an $8,000 to $10,000 range, Strategy would have to consider risk tied to its debt. He also said Strategy is not retreating, framing the effort as a shift from a pure Bitcoin treasury model to what he called a full digital capital platform.
According to price data cited by Decrypt, STRC has traded below its $100 par value since mid-May, changing hands around $89 on Wednesday. Le said that as the reserve grew, STRC moved from lows in the $75 range to near $90, noting that selling new preferred shares is less attractive while the stock stays below par.
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