- Strategy CEO says debt risks emerge only if Bitcoin falls between $8,000 and $10,000 while reaffirming accumulation plans remain unchanged.
- Recent bitcoin sale supported capital management, demonstrated liquidity, and helped build a $3 billion cash reserve supporting future purchases responsibly.
- Strategy plans additional STRC issuance once shares return to par, strengthening bitcoin exposure and shareholder value through disciplined capital allocation.
Strategy CEO Phong Le has reaffirmed the company’s commitment to expanding its bitcoin holdings, saying debt-related risks would only become a concern if bitcoin falls to between $8,000 and $10,000. He also emphasized that the company has no intention of slowing its long-term bitcoin acquisition strategy.
According to Le, Strategy remains financially secure despite recent market weakness. He explained that the company’s balance sheet was designed to withstand major downturns while supporting its long-term investment approach. Moreover, Le said the company’s recent sale of more than $215 million worth of bitcoin should not be viewed as a change in strategy. Instead, he explained that the transaction formed part of a broader capital management plan and demonstrated the liquidity of Strategy’s bitcoin holdings.
Additionally, Strategy has not purchased more bitcoin since the week ending June 22. However, the company recently raised approximately $467 million through common stock sales, increasing its cash reserve to nearly $3 billion. Le noted that preferred shareholders wanted the company to maintain a stronger cash position. As a result, Strategy increased its liquidity while preserving flexibility for future investments.
Also Read: Crypto Market Update as Ethereum, XRP Lead Gains While Solana and Dogecoin Slip
Capital strategy remains focused on future bitcoin purchases
According to Le, Strategy would only reassess debt-related risks if bitcoin declines to around $8,000 or $10,000. With bitcoin trading near $65,000, he said the company remains comfortable with its financial position. Besides, Le pointed to Strategy’s performance during the 2022 bear market as evidence that its financial structure can withstand prolonged price declines. He added that the company intends to remain one of the largest corporate bitcoin buyers for the foreseeable future.
Le also said Strategy has evolved beyond operating solely as a bitcoin treasury company. Instead, he described it as a digital capital platform that plans to raise additional funds to support future bitcoin acquisitions. A central part of that strategy involves STRC, Strategy’s perpetual preferred stock known as Stretch. According to Le, the company intends to issue more STRC once it returns to its $100 par value.
The proceeds from future STRC offerings would fund additional bitcoin purchases while also strengthening the company’s U.S. dollar reserve. He explained that issuing more preferred shares increases bitcoin per share and supports shareholder value over time.
However, STRC has traded below its $100 par value since May and was changing hands at around $88 on Wednesday. Meanwhile, Strategy’s multiple to net asset value recently recovered to approximately 1.02 after briefly falling below one.
Conclusion
According to Le, Strategy remains committed to its long-term bitcoin accumulation plan despite recent asset sales. The company believes its capital structure, cash reserves, and preferred stock program provide sufficient flexibility to pursue additional bitcoin purchases while managing market volatility.
Also Read: BlackRock Revives Bitcoin Buying With $138.9 Million ETF Purchase as Demand Returns
