Strategy CEO says company isn't going anywhere as bitcoin buyer, sees debt concerns only below $10,000 BTC

Quick Take

• Strategy plans to remain a long-term buyer of bitcoin despite its recent sales, President and CEO Phong Le said in a Bloomberg TV interview.
• Le said Strategy would begin considering risks associated with its debt only if bitcoin falls to around $8,000-$10,000, adding that the company currently feels very secure about its balance sheet.

Michael Saylor's Strategy has no plans to stop buying bitcoin despite its recent sales and would only begin considering risks associated with its debt if bitcoin falls to around $8,000-$10,000, President and CEO Phong Le said.

"We're not going anywhere," Le said in a Bloomberg TV interview on Tuesday afternoon. "My objective would be the largest buyer of bitcoin for the foreseeable future."

Strategy (MSTR) recently sold over $215 million worth of bitcoin as part of its capital strategy. It has not purchased any bitcoin since the week ended June 22. Last week, the company raised about $467 million through the sale of common stock, increasing its cash reserve to roughly $3 billion. Strategy said the reserve is sufficient to cover preferred stock dividend payments for about two years and gives Strategy additional financial flexibility.

Le said Strategy increased its cash reserve after preferred shareholders indicated that maintaining liquid cash on the balance sheet in the short term was important. He added that the recent bitcoin sale was also intended to demonstrate liquidity in the company's bitcoin holdings.

Strategy sees debt concerns only below $10,000 bitcoin

Asked how Strategy would respond if bitcoin (BTC) remained under pressure or fell significantly further, Le said the company does not expect balance-sheet concerns unless bitcoin drops to around $8,000-$10,000.

"When bitcoin gets down close to $8,000 or $10,000, that is when we have to consider the risks associated with our debt. Until that point in time, we feel very secure about our balance sheet," Le said. Bitcoin is currently trading at around $65,000.

Le added that Strategy has designed its capital structure to withstand bear markets while remaining positioned to benefit from future rallies. The company went through a similar period during the 2022 downturn and expects to continue accumulating bitcoin over the long term, he said.

Le said Strategy has evolved from a bitcoin treasury company into what he described as a broader digital capital platform. The company plans to continue raising capital over time to support future bitcoin purchases.

A key part of that strategy involves STRC, Strategy's perpetual preferred stock known as Stretch. Le said the company plans to issue more STRC once it returns to its $100 par value. The proceeds would be used to buy more bitcoin while potentially adding to the company's U.S. dollar reserve, which he described as a key part of Strategy's long-term capital plan.

"When STRC gets back to par, we will issue more. We will buy bitcoin," Le said. "That is a big part of our capital plan to issue more preferred over time because that is very accretive to our bitcoin per share, which is accretive to our shareholders."

STRC has traded below its $100 par value since May. The shares were trading at around $88 on Wednesday.

"Our shareholders understand our primary goal is over time to outperform bitcoin," Le said. As long as Strategy is priced above the net asset value of its bitcoin, the company can issue more equity, he added.

Strategy's multiple to net asset value (mNAV), which compares the company's market capitalization with the value of its bitcoin holdings, fell below 1 last month and has since recovered to about 1.02.

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