Bitcoin Price Drop to $8K–$10K Could Trigger Debt Concerns at Strategy, Says Phong Le

In the latest Bitcoin update, Strategy CEO Phong Le said on Bloomberg TV that the company’s balance sheet would remain resilient unless Bitcoin falls into the $8,000–$10,000 range. He described this level as a stress threshold for the firm’s capital structure linked to debt exposure—not a prediction of market direction. With Bitcoin currently trading near $64,500, such a drop would equate to roughly an 85% decline.

Strategy’s stock (MSTR) closed Tuesday at $97.58, up about 6% on the day. However, the gain does little to ease concerns about the company’s leveraged Bitcoin accumulation strategy and the market’s willingness to continue funding it.

Bitcoin News: Understanding the $8K–$10K Threshold

Le explained that the $8,000–$10,000 range represents the point where Strategy would begin reassessing risks tied to its debt. For now, he maintains that the balance sheet remains strong, with the company focused on building a capital structure that can withstand downturns while still benefiting from bullish market cycles.

He also outlined a more extreme downside scenario, noting that Bitcoin would need to fall by 90% or remain depressed for five years before Strategy might consider selling BTC to meet its convertible debt obligations—an outcome he described as highly unlikely. This reinforces the company’s position that any Bitcoin liquidation would occur only under exceptional circumstances.

As of mid-2026, Strategy holds more than 840,000 BTC, making it the largest corporate holder of Bitcoin. While a sharp price drop would significantly impact its assets, whether forced selling occurs depends primarily on its liabilities—particularly debt maturities and available liquidity.

STRC Weakness and the USD Liquidity Focus

The more immediate concern lies with Strategy’s perpetual preferred stock, STRC, rather than its convertible debt. Designed to maintain a $100 par value with a 13% yield, STRC fell below par in April 2026 and dropped under $75 in late June before recovering to around $90. When the stock trades below par, it limits the company’s ability to issue new shares to finance additional Bitcoin purchases.

To address this, Le emphasized the importance of strengthening U.S. dollar reserves. Following a recent stock sale, Strategy increased its cash holdings to approximately $3 billion, up from a previous $1.4 billion target, enabling the company to pause Bitcoin sales between July 6 and July 12. This reserve is sufficient to cover dividends and interest payments for around 21 months without liquidating Bitcoin.

Earlier reports indicated that Strategy sold 3,588 BTC at roughly $60,000—below its average cost basis of about $75,000—to fund preferred dividends. Le described these transactions as part of operational testing and tax-loss strategies rather than distress-driven sales.

While this explanation aligns with the company’s improved liquidity position, selling Bitcoin below cost remains a notable detail that markets have yet to fully absorb. Strategy’s Bitcoin Monetization Program is designed to ensure such sales remain occasional rather than routine.