CoinDesk
Strategy CEO Phong Le told Bloomberg TV the company would not panic over its bitcoin-backed balance sheet until BTC fell to $8,000-$10,000, an 85% drop from current levels near $64,500. "Until that point in time, we feel very secure about the balance sheet," Le said, framing the range as the zone where the company "would have to consider some of the risk associated with our debt."
The more immediate pressure sits in the preferred-stock layer. STRC, a 13%-yield instrument designed to maintain a $100 par, lost that peg in April and fell below $75 in late June. Le pointed to building a U.S.-dollar reserve as the lever that has helped STRC recover toward $90, calling liquid access to dollar capital "quite important."
Why it matters
Strategy's preferred-share structure is the funding engine for its bitcoin accumulation: dividends are paid in stock, and the company issues new shares to buy BTC. Once STRC trades below $100, that issuance window narrows, slowing the flywheel. Le's $8K-$10K floor is reassuring in a vacuum, but the more relevant stress test is whether STRC can hold par while BTC drifts, not whether Strategy can survive an 85% crash.
Market impact
MSTR closed near $97.58, down 6% on the session, 36% year-to-date, and 78% off its 12-month high. The shares now trade at a 1.02 multiple to net asset value, barely above the bitcoin backing on the balance sheet. That compresses the premium investors historically paid for leverage and treasury execution, leaving MSTR priced closer to a passive BTC proxy than to the operating story Le has spent years building. A drop below 1.0 mNAV, as briefly happened in late June, is the line the equity needs to defend.
Frequently asked questions
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What did Strategy CEO Phong Le say about the bitcoin price floor?
Le told Bloomberg TV the balance sheet holds until BTC falls to $8,000-$10,000, roughly an 85% drawdown from levels near $64,500. He framed that range as where the company would have to consider the risk on its debt.
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What is STRC and why does it matter for Strategy's bitcoin buys?
STRC is a preferred stock paying a 13% annual dividend, designed to maintain a $100 par. It funds Strategy's bitcoin accumulation: new shares are issued to raise cash, which is then used to buy BTC. When STRC trades below $100, that issuance window narrows.
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Why has STRC been under pressure?
STRC lost its $100 par in April and fell below $75 in late June as bitcoin weakened. Le pointed to building a U.S.-dollar reserve as the lever that has helped STRC recover toward $90.
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What is mNAV and where does MSTR currently sit?
mNAV compares MSTR's market cap to the value of its bitcoin holdings. The metric fell below 1 at the end of June and now sits at 1.02, meaning shares offer only a slight premium to the BTC on the balance sheet.
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How far is MSTR from its 12-month high?
MSTR closed near $97.58, down 6% on the session, 36% year-to-date, and 78% below its 12-month high, with the equity now trading closer to a passive BTC proxy than to the operating story.
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