Strategy CEO Says Balance Sheet Is Safe Unless Bitcoin Drops Below $10,000

Strategy Chief Executive Officer Phong Le said the company sees no threat to its financial health unless Bitcoin falls to about $8,000 to $10,000.

Le told Bloomberg TV in an interview cited by The Block on July 15 that "we're not going anywhere" and that the company's goal is to remain the biggest buyer of Bitcoin for as long as possible.

Asked how Strategy would respond to a sharp drop in Bitcoin, Le said it would only start considering debt-related risks if the cryptocurrency neared the $8,000 to $10,000 range. Until then, he said, the company views its financial position as very stable. Bitcoin was trading at about $65,000.

As part of its recent capital strategy, Strategy sold $215 million worth of Bitcoin and made no additional purchases after the week ended June 22. Last week, the company raised about $467 million through common-stock sales, increasing its cash holdings to about $3 billion. Le said that amount is enough to cover preferred-stock dividends for about two years and was meant to increase financial flexibility.

Le said Strategy is evolving from a corporate Bitcoin treasury company into a broader digital capital platform. It plans to continue raising capital and use the proceeds to buy Bitcoin. One of its key tools is perpetual preferred stock STRC. If STRC returns to its $100 par value, the company will issue more of it to fund Bitcoin purchases, he said. Le described that as a core part of Strategy's capital plan to increase Bitcoin holdings per share and enhance shareholder value. STRC has traded below its $100 par value since May and was recently trading at about $88.

Strategy's market capitalization-to-net asset value multiple, or mNAV, fell below 1 last month and has since recovered to about 1.02. Le added that shareholders understand the company's top priority is to outperform Bitcoin returns over the long term.