Strategy CEO Phong Le stated on Bloomberg TV on the 15th that the company will not engage in a panic sale of Bitcoin even if the price drops approximately 85% from current levels. However, he acknowledged that debt-related risks would be reconsidered if Bitcoin falls to the $8,000–$10,000 range.
Debt Risk Threshold and Capital Structure
With Bitcoin currently trading around $64,500, an 85% decline would bring it to roughly $8,000–$10,000. Le emphasized that before reaching that level, the company's financial position remains "very stable." He highlighted that building a capital structure capable of weathering bear markets and maximizing profits in bull markets is key to Strategy's approach.
STRC Preferred Stock Under Pressure
Strategy's preferred stock, STRC, issued to fund Bitcoin purchases, has been under recent pressure. Designed to offer a 13% annual dividend, STRC fell below its $100 par value in April and dropped under $75 by late June. When STRC trades below $100, issuing new shares becomes restricted, limiting the company's ability to buy more Bitcoin. Le identified securing dollar liquidity as the primary tool to address this, stating that access to sufficient dollar liquidity has proven crucial in recent months.
Weakening Stock and Premium Signal Market Concerns
Strategy's stock closed at $97.58 on the 15th, up about 6% on the day but down roughly 36% year-to-date and 78% over the past year. The market is closely watching the mNAV ratio—the company's market cap relative to its Bitcoin holdings—which fell below 1 in late June and now sits at 1.02, indicating that the premium over Bitcoin's net asset value has nearly vanished. Le noted that a stock price above net asset value suggests investors expect more than just passive holding. As Bitcoin volatility increases, Strategy's leveraged structure remains a key variable, though the company maintains that its financial framework is sufficiently defensive except in extreme downside scenarios.