TLDR
- Strategy CEO Phong Le says the company feels “very secure” unless Bitcoin drops to the $8,000–$10,000 range — an ~85% fall from current levels.
- MSTR closed nearly 6% up at $97.58 on Tuesday, but remains 36% down year-to-date.
- Preferred stock STRC has been trading below its $100 par value, falling under $75 in late June before recovering to around $90.
- Le personally bought $1 million worth of STRC to signal confidence in its recovery.
- Strategy is targeting an $80 billion capital raise and a goal of holding 1 million BTC.
Strategy CEO Phong Le sat down with Bloomberg TV on Tuesday and laid out exactly where the pain threshold is for the company’s bitcoin strategy. The answer: a lot lower than most people might expect.
Le said Strategy wouldn’t need to seriously consider the risks tied to its debt unless Bitcoin fell to the $8,000–$10,000 range. Bitcoin was trading around $64,500 at the time of the interview. That would be a drop of roughly 85%.
“Until that point in time, we feel very secure about the balance sheet,” Le said.
MSTR closed up nearly 6% at $97.58 on Tuesday. Despite that, the stock is still down around 36% year-to-date and 78% lower than it was 12 months ago.
Strategy currently holds between 843,000 and 845,000 BTC, making it the largest Bitcoin holder among publicly traded companies. The company’s stated goal is to reach 1 million BTC — about 18% more than it holds today.
The STRC Problem
The more pressing issue right now isn’t Bitcoin’s price — it’s the company’s preferred stock, STRC.
STRC is designed to hold a $100 par value and pay a regular dividend — currently around 11.5% to 13% annually — giving Strategy a way to raise cash to fund Bitcoin purchases. But the stock lost its par value in April and fell below $75 in late June before climbing back to around $90.
When STRC trades below $100, it limits Strategy’s ability to issue new stock and use the proceeds to buy Bitcoin. That’s a problem for a company whose entire model is built around accumulating BTC.
Le’s plan to fix it is straightforward: rebuild the U.S. dollar cash reserve. “We’ve learned over the last couple of months that having that liquid access to U.S.-dollar capital is quite important,” he said.
He also put his own money in. Le personally purchased $1 million worth of STRC, a move intended to show he believes it will recover to par.
The $80 Billion Target
Beyond fixing STRC, Le is thinking bigger.
Strategy is aiming to raise over $80 billion through a mix of debt and equity, which would fund further Bitcoin purchases and cover dividend obligations without having to sell BTC.
In late May or early June 2026, Strategy did sell 32 BTC — its first Bitcoin sale since December 2022 — raising around $2.5 million. Le framed it as a systems test, not a distress signal, saying the company wanted to verify its internal processes for liquidating Bitcoin actually work.
Strategy’s cost basis on its current holdings sits at approximately $61.81 billion.
Another key metric investors are watching is the mNAV — the ratio of MSTR’s market cap to its Bitcoin holdings. That figure dipped below 1 at the end of June and now sits at 1.02.
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