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Strategy CEO says it will stay calm unless bitcoin falls to $8,000-$10,000
The CEO pointed to building up the company’s U.S.-dollar reserve, saying STRC has recovered to around $90 after trading below $75 last month.
Strategy CEO Phong Le said the company would not “panic” about its balance sheet unless bitcoin drops into a roughly $8,000 to $10,000 range, a level he described as the point where Strategy would have to consider risks tied to its debt. CoinDesk reported that Le said the company currently feels “very secure” until that threshold is reached, in an interview with Bloomberg TV.
Le also highlighted the importance of expanding Strategy’s liquid access to U.S.-dollar capital, noting that strengthening that reserve is a key lever in supporting the recovery of its preferred stock, STRC. CoinDesk said STRC is designed to maintain a $100 par value, and it has been under pressure after losing that level in April and falling below $75 in late June, before recovering to around $90.
The preferred stock is designed to provide cash flow for Strategy’s bitcoin buying in exchange for a regular dividend, which CoinDesk reported is currently a 13% annual yield. CoinDesk also said STRC restricting below $100 limits Strategy’s ability to issue new shares and then use the proceeds to buy more bitcoin.
CoinDesk added that bitcoin-related exposure remains central to Strategy’s market assessment, citing its multiple to net asset value, or mNAV. It said the metric fell below 1 at the end of June and now sits at 1.02, and that Le tied the interpretation of the metric to whether the shares trade at a premium to the value of the company’s bitcoin holdings.
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