Key Takeaways
- CEO Phong Le indicates Strategy remains comfortable with its position unless Bitcoin plummets to $8,000–$10,000 — representing an approximately 85% decline from present prices.
- MSTR shares gained almost 6% to reach $97.58 on Tuesday, though the stock continues to trade 36% lower for the year.
- The company’s preferred shares, STRC, have struggled to maintain their $100 par value, dropping beneath $75 in late June before rallying toward $90.
- To demonstrate conviction, Le purchased $1 million of STRC stock personally.
- The firm aims to secure $80 billion in capital while working toward accumulating 1 million BTC.
In a Tuesday interview with Bloomberg TV, Strategy CEO Phong Le provided detailed insights into the company’s risk parameters surrounding its bitcoin-focused approach. His message: the danger zone is significantly further away than many observers anticipate.
According to Le, [[LINK_START_1]]Strategy[[LINK_END_1]] wouldn’t face genuine concerns about its debt obligations unless Bitcoin declined to the $8,000–$10,000 territory. With Bitcoin hovering near $64,500 during the conversation, such a scenario would represent approximately an 85% collapse.
“Until that point in time, we feel very secure about the balance sheet,” Le stated confidently.
MSTR shares finished Tuesday’s session nearly 6% higher at $97.58. However, the stock remains approximately 36% below its starting point for the year and has declined 78% compared to its price one year ago.
The company’s Bitcoin treasury currently contains between 843,000 and 845,000 BTC, positioning it as the leading corporate Bitcoin holder worldwide. Management has established a target of accumulating 1 million BTC — roughly 18% beyond current holdings.
Addressing the STRC Challenge
While Bitcoin’s price movements grab headlines, the immediate challenge facing Strategy involves its preferred equity instrument, STRC.
STRC was structured to maintain a $100 par value while distributing consistent dividends — presently yielding between 11.5% and 13% annually — providing Strategy with a capital-raising mechanism to finance additional Bitcoin acquisitions. Unfortunately, the security lost its par value in April and tumbled below $75 by late June before recovering to approximately $90.
When STRC trades beneath $100, Strategy’s capacity to issue additional shares and deploy the capital for Bitcoin purchases becomes constrained. This creates significant complications for an organization whose fundamental business model centers on Bitcoin accumulation.
Le’s solution is direct: replenish the company’s U.S. dollar 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.
To underscore his commitment, Le made a personal investment of $1 million in STRC shares, designed to signal his belief in the preferred stock’s return to par value.
The $80 Billion Capital Initiative
Beyond resolving the STRC situation, Le has set ambitious expansion goals.
Strategy plans to secure more than $80 billion through combined debt and equity offerings, capital that would finance additional Bitcoin acquisitions and fulfill dividend commitments without requiring BTC liquidations.
Between late May and early June 2026, Strategy disposed of 32 BTC — marking its first Bitcoin sale since December 2022 — generating approximately $2.5 million. Le characterized this transaction as a procedural verification rather than a sign of financial distress, explaining the company needed to confirm its Bitcoin liquidation infrastructure functions properly.
Strategy’s average cost basis across its current Bitcoin position stands at roughly $61.81 billion.
Market participants are also monitoring the mNAV metric — the relationship between MSTR’s market capitalization and the value of its Bitcoin reserves. This ratio briefly dropped below 1 at June’s end and currently registers at 1.02.
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