Strategy Seen as Resilient Unless Bitcoin Revisits Sub-$10K Levels

Strategy CEO Phong Le said the company remains confident in its financial position and would only need to reassess its debt risks if bitcoin were to plunge toward the $8,000–$10,000 range.

Strategy (MSTR), the largest publicly traded corporate holder of bitcoin, is not concerned about its balance sheet under current conditions, Le said during a Bloomberg TV interview on Tuesday. He noted that only an extreme BTC decline would force the company to revisit potential risks tied to its debt.

A drop to the $8,000–$10,000 level would represent roughly an 85% decline from bitcoin’s current price near $64,500. Le said that until such a scenario occurs, the company believes its balance sheet remains secure.

He added that Strategy’s objective is to maintain a capital structure strong enough to endure extended bear markets while allowing the company to take advantage of future bullish cycles.

Strategy’s preferred stock STRC, which was created to provide funding for bitcoin purchases while offering investors a recurring dividend currently yielding around 13% annually, has come under pressure in recent months. The shares were structured around a $100 par value but fell below that level in April and later dropped beneath $75 in late June.

When STRC trades below its $100 target, Strategy’s ability to issue new shares and raise additional funds for bitcoin purchases becomes limited.

Le said rebuilding the company’s U.S. dollar reserves is a key factor in supporting STRC’s recovery, which has since moved back toward the $90 range. He emphasized that maintaining access to liquid dollar capital has become increasingly important and said Strategy will continue expanding its reserves.

MSTR shares finished Tuesday nearly 6% higher at $97.58, but the stock remains down about 36% year-to-date and roughly 78% below its level from a year earlier.

Investors continue to monitor Strategy’s market capitalization-to-net-asset-value (mNAV) ratio, which compares the company’s market value with the worth of its bitcoin holdings. The ratio fell below 1 in late June before recovering to around 1.02, meaning MSTR currently trades at only a slight premium to its underlying BTC assets.

Le said that as long as MSTR trades above the net asset value of its bitcoin holdings, shareholders are still crediting the company for additional value beyond bitcoin’s own market performance.