CEO Says Strategy Remains “Very Secure” Unless Bitcoin Falls to $8K–$10K

Strategy CEO Phong Le said the company would only begin reassessing balance-sheet risks if bitcoin falls into the $8,000–$10,000 range, while emphasizing that current conditions remain manageable.

Strategy (MSTR), the world’s largest publicly traded bitcoin holder, is not expected to face major concerns unless BTC experiences an extreme decline toward the $8,000–$10,000 level, according to its CEO.

In an interview with Bloomberg TV on Tuesday, Le said such a scenario would be the point where the company would need to “consider some of the risk associated with our debt.” A move to that range would represent roughly an 85% decline from bitcoin’s current price near $64,500.

“Until that point in time, we feel very secure about the balance sheet,” Le said, adding that the company’s goal is to maintain a capital structure capable of surviving market downturns while benefiting during bullish cycles.

Strategy’s preferred stock STRC, which provides cash flow to support its bitcoin acquisition strategy in exchange for a fixed dividend currently yielding about 13% annually, has faced pressure in recent months. The stock is structured around a $100 par value but fell below that level in April and dropped under $75 in late June.

When STRC trades below $100, Strategy’s ability to raise funds through new share issuance and deploy that capital into bitcoin purchases becomes more limited.

Le said rebuilding the company’s U.S. dollar reserves is a key factor in helping STRC recover, with the stock recently moving back toward the $90 level.

“We’ve learned over the past few months that maintaining access to liquid U.S. dollar capital is extremely important,” Le said, adding that the company plans to continue strengthening its reserves.

Strategy shares closed nearly 6% higher at $97.58 on Tuesday but remain down about 36% year-to-date and 78% lower compared with the same period last year.

Investors continue to watch Strategy’s multiple-to-net-asset-value (mNAV), which measures the company’s market capitalization against the value of its bitcoin holdings. The metric fell below 1 at the end of June and currently stands near 1.02, indicating that MSTR shares trade at only a slight premium to the company’s BTC reserves.

Le said that as long as MSTR trades above the net asset value of its bitcoin holdings, shareholders are effectively recognizing additional value beyond bitcoin’s own performance.